10) Lexington is following the residual dividend policy with regard to the payment of cash dividends. Which of the statements below best describes that policy?

Group of answer choices

common stock dividends should be paid only after investment financing needs have been met.

common stock dividends should be a constant percentage of earnings per share.

common stock dividends should be a residual of the retention rate.

common stock dividends should be paid only after preferred dividends have been paid.