If a Firm Follows a Residual Dividend Policy,they Will Give

question 29

Multiple Choice

If a firm follows a residual dividend policy,they will give precedence to:

• A)avoiding dividend cuts over changing the debt-equity ratio
• B)maintaining a constant level of debt before paying dividends
• C)paying dividends over accepting positive investments
• D)maintaining their desired debt-equity ratio over paying dividends
• E)paying a constant dividend over increasing retained earnings

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Definitions:

Making Decisions

The process of selecting a course of action from several alternatives to achieve a specific objective.

Management Accounting Responses

The actions or strategies that management accounting suggests or implements in response to financial analyses or business challenges.

E-Commerce

The exchange of goods and services, or the transfer of money or information, across an electronic network, mainly the internet.

Management Accountant

A professional responsible for analyzing financial information to guide business strategy, planning, and decision-making.