Question
According to the residual theory of dividends, if a firm's equity need exceeds the amount of retained earnings, the firm would ________. a. pay no
According to the residual theory of dividends, if a firm's equity need exceeds the amount of retained earnings, the firm would ________.
| a. | pay no cash dividend | |
| b. | borrow money to pay dividend | |
| c. | sell additional stock to pay cash dividend | |
| d. | pay less dividends |
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International Finance
Authors: Maurice D Levi
5th Edition
0415774594, 9780415774598
