According to the Residual Theory of Dividends

question 19

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 preference share dividends should be paid to ordinary shareholders.
• C)dividend payments are a constant percentage of EPS.
• D)a dividend is the residual above the payout ratio.

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Definitions:

Disease

A disorder or illness that affects a living organism's body or parts of it, often characterized by specific signs and symptoms.

Alcoholics

Individuals suffering from alcoholism, a chronic disease characterized by uncontrolled drinking and preoccupation with alcohol.

Drinker Progresses

Refers to the stages or changes in drinking behavior that can lead to increased consumption, dependence, or alcoholism.

Organized Groups

Entities formed by individuals with a common purpose or activity, structured to achieve collective goals.