Describe the residual dividend model. Explain how it operates and how firms use it in practice. In
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Describe the residual dividend model. Explain how it operates and how firms use it in practice. In your answer, discuss any influences signaling and the clientele effect might have on a firm’s decision to use, not use, or modify this model,
Clientele effect explains the movement in a company's stock price according to the demands and goals of its investors. These investor demands come in reaction to a tax, dividend or other policy change which affects the shares. The clientele effect... 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...
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Residual implies left over and the residual dividend policy implies that dividends are paid only aft...View the full answer
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