If a firm adheres strictly to the residual dividend policy, the issuance of new common stock would
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Question:
If a firm adheres strictly to the residual dividend policy, the issuance of new common stock would suggest that
- no dividends to common stockholders.
- dividends only out of funds raised by the sale of new common stock.
- dividends only out of funds raised by borrowing money (i.e., issue debt).
- dividends only out of funds raised by selling off fixed assets.
- no dividends except out of past retained earnings.
Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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