The $\_\_\_\_\_\_\_\_\_\_\_\_\_$ policy states that dividends will vary based upon how much excess funds the firm has from year$-$to$-$year, whereas under a $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ policy the firm pays a constant percentage of earnings as dividends, so as earnings rise and fall so does the dollar amount of dividends.

Question $14$ options:

constant payout ratio, residual dividend

residual dividend, constant payout ratio

constant dividend, variable payout ratio

variable payout ratio, constant dividend