According to the Residual Theory of Dividends

question 67

Multiple Choice

According to the residual theory of dividends

• A) dividends are to be paid out only after investment financing needs have been met.
• B) earnings remaining after payment of preferred stock dividends should be paid to common stockholders.
• C) dividend payments are a constant percentage of EPS.
• D) a dividend is the residual above the payout ratio.

---

Definitions:

Renal Pelvis

The central collecting region in the kidney where urine gathers before flowing into the ureter.

Renal Column

Cortical tissue in the kidney that extends between the renal pyramids.

Simple Cuboidal

A type of epithelial tissue composed of a single layer of cube-shaped cells, often engaged in secretion and absorption.

Microvilli

Tiny, finger-like projections on the surface of some cells that increase their surface area for absorption.