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Which of the following would cause dividends to decrease if the firm was using the residual dividend model? The firm has fewer positive NPV projects.
Which of the following would cause dividends to decrease if the firm was using the residual dividend model?
The firm has fewer positive NPV projects. | |
The firm's dividend payout ratio decreases. | |
Net income decreases. | |
All of these would cause dividends to decrease. |
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