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:

Cross-selling

The strategy of selling additional products or services to an existing customer based on their previous purchases.

Downselling

A sales strategy where a seller offers a more affordable or lesser alternative to a product the customer initially showed interest in.

Upselling

A sales technique where a seller induces the customer to purchase more expensive items or add-ons for an upgrade.

Managing Data

The process of acquiring, validating, storing, protecting, and processing required data to ensure the accessibility, reliability, and timeliness of the data for its users.