What are some of the drawbacks of following a strict residual dividend policy? What do firms(Is It

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What are some of the drawbacks of following a strict residual dividend policy? What do firms(Is It Much Ado About Nothing?) typically do in practice?

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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