The residual dividend theory suggests that dividends will only be paid
A) if the corporation has more positive NPV projects than it can fund.
B) if the tax rate on capital gains is higher than the tax rate on dividends.
C) if interest rates available to shareholders are higher than the required return on the company's
stock.
D) if current retained earnings exceed the equity portion of the firm's capital budget.
D
Business
You might also like to view...
A retailer seeks to determine the quality of sales personnel presentations. An appropriate primary data collection technique is _____
a. observation b. a mail survey c. an experiment d. simulation
Business
The primary difference between a merchandise mart and a trade show is based on _____
a. cost b. location c. membership requirement d. permanence
Business