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One position expressed in the financial literature is that firms set their dividends as a residual after using income to support new investments. Explain what

One position expressed in the financial literature is that firms set their dividends as a residual after using income to support new investments. Explain what a residual policy implies (assuming that all distributions are in the form of dividends), illustrating your answer with a table showing how different investment opportunities could lead to different dividend payout ratios

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