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Your firm follows a strict residual dividend policy. All else equal, which of the following factors would be most likely to lead to an increase
Your firm follows a strict residual dividend policy. All else equal, which of the following factors would be most likely to lead to an increase in your firm's dividend per share?
| a. The company reduces the percentage of equity in its target capital structure. | |
| b. The number of profitable potential projects increases. | |
| c. Congress lowers the tax rate on capital gains. | |
| d. Earnings are unchanged, but the firm issues new shares of common stock. | |
| e. The firm's net income decreases. |
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