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3. Dividend Policy It is Sometimes SuggestEd that firms Should follow a residual dividend policy . With such a policy , the main idea is
3. Dividend Policy It is Sometimes SuggestEd that firms Should follow a" residual" dividend policy . With such a policy , the main idea is that a firm should focus on meeting its investment needs and maintaining it's desired debt - equity ratio . Having done so , a firm pays out any leftover , or residual , income as dividends . What do You think would be the chief drawback to a residual dividend policy ?"
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