A Residual Dividend Policy Is One in Which

question 98

Multiple Choice

A residual dividend policy is one in which

• A)leftover funds are paid out to stockholders as dividends after all other capital requirements are met.
• B)a conservative dividend payment is made each period to stockholders.
• C)no dividends are paid to stockholders because they will reap their benefits when the firm ceases operations.
• D)bondholders receive extra cash flows when available after paying dividends to shareholders.

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Definitions:

Indirect Benefits

Advantages that do not directly influence an organism's survival or reproduction but may enhance the survival or reproductive success of its relatives or offspring.

Sexual Selection

A type of natural selection that arises through preference by one sex for certain characteristics in individuals of the other sex.

Reproductive Success

The passing of genes onto the next generation in a way that they too can pass those genes on, a crucial component of natural selection and evolutionary fitness.

Direct Food Benefit

Direct Food Benefit refers to the immediate advantage obtained from consuming food, including nutritional intake necessary for survival, growth, and health maintenance.