Question: 15 .90 (4) (5) External Capital Financing Expenditures (2) + (4) - (1) d. Aggregate dividends are highest under alternative c, which involves a 50

15

.90

(4) (5)

External Capital Financing Expenditures (2) + (4) - (1)

d. Aggregate dividends are highest under alternative

c, which involves a 50 percent dividend payout. However, they are only slightly higher than that which occurs under alternative

b. External financing is minimized under alternative

a, the residual dividend policy.

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