If a firm follows the modified residual dividend model discussed in this chapter, are extraordinary dividends paid

Question:

If a firm follows the modified residual model discussed in this chapter, are extraordinary dividends paid out of residual net income?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...