According to the residual theory of dividends, if a firm’s equity need
According to the residual theory of dividends, if a firm’s equity need exceeds the amount of retained earnings, the firm would ________.
A) borrow to pay the cash dividend
B) sell additional stock to pay the cash dividend
C) pay no cash dividends
D) pay less dividends
ANSWER
C
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.