According to the residual theory of dividends
A) dividends are to be paid out only after investment financing needs have been met.
B) earnings remaining after payment of preferred stock dividends should be paid to common stockholders.
C) dividend payments are a constant percentage of EPS.
D) a dividend is the residual above the payout ratio.
Answer: A
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In the context of individualism, which of the following is inconsistent with the works of the ancient Greek philosopher Aristotle?
A. Guaranteeing individual freedom B. Government dictating what is in the best interest of society C. Guaranteeing self-expression D. Committing to private ownership E. Treating individual diversity as desirable