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Is it true? Explain, why? Please, provide very detailed answer with logical steps. If a firm adopts a residual distribution policy, distributions are determined as
Is it true? Explain, why? Please, provide very detailed answer with logical steps. If a firm adopts a residual distribution policy, distributions are determined as a residual after funding the capital budget. Therefore, the better the firm's investment opportunities, the lower its payout ratio should be.
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