Question: Section B Short Answer Questions 30 marks. Theory explanation and discussion In this second section, you are required to answer the following questions: Discuss the

Section B Short Answer Questions 30 marks. Theory explanation and discussion

In this second section, you are required to answer the following questions:

Discuss the difference between a sticky dividend policy with a residual dividend policy. Which policy is more widely used by large corporations? What advantages does that policy have over the other? (Hint: Use real life situation to explain your answer). (10 marks)

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