Which of the Following Would Cause Dividends to Decrease If

question 79

Multiple Choice

Which of the following would cause dividends to decrease if the firm was using the residual dividend model?

• A)The firm has more positive NPV projects.
• B)The firm uses less debt in its capital structure.
• C)Net income decreases.
• D)All of these would cause dividends to decrease.

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Definitions:

Intimate Partner

A person with whom one has a close personal relationship that can be characterized by emotional connections, sexual intimacy, or shared living arrangements.

Severe Physical Violence

A form of physical aggression that is significantly harmful or intense, often resulting in injuries.

United States

A country in North America composed of 50 states, a federal district, five territories, and various possessions.

Intimate Partner Violence

A pattern of behavior within a romantic relationship that causes physical, psychological, or sexual harm to one of the partners.