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According to the residual theory of dividends, if the firm's equity need is less than the amount of retained earnings, the firm would Answer borrow
According to the residual theory of dividends, if the firm's equity need is less than the amount of retained earnings, the firm would
Answer borrow to pay the cash dividend. | ||
declare a dividend equal to the remaining balance. | ||
pay no cash dividends. | ||
not need to consider its dividend policy. |
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