Question

It is sometimes suggested that firms should follow a “residual” dividend policy. With such a policy, the main idea is that a firm should focus on meeting its investment needs and maintaining its desired debt−equity ratio. Having done so, a firm pays out any leftover, or residual, income as dividends.
What do you think would be the chief drawback to a residual dividend policy?



$1.99
Sales0
Views52
Comments0
  • CreatedAugust 28, 2014
  • Files Included
Post your question
5000