How is the residual theory of dividends used to explain observed dividend payments How is this theory in conflict with evidence suggesting that corporate managers smooth dividends ...

According to the residual theory of dividends the actual divid ...

How is the residual theory of dividends used to explain observed dividend payments? How is this theory

Question:

How is the residual theory of dividends used to explain observed payments? How is this theory in conflict with evidence suggesting that corporate managers smooth dividends?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...