Question
Which of the following statements is correct? Group of answer choices If a company uses the residual dividend model to determine its dividend payments, dividends
Which of the following statements is correct?
Group of answer choices
If a company uses the residual dividend model to determine its dividend payments, dividends payout will tend to increase whenever its profitable investment opportunities increase.
A high participation rate in a Dividend Reinvestment Plan (DRIP) suggests that stockholders might be better off if the firm simply increased cash dividends.
An investors capital gains from selling stock in a repurchase are always taxed at a higher rate than if the distribution were dividends.
It is good practice for a company to be consistent with its dividend policy.
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