Explore BrainMass

Explore BrainMass

    Capital structure and dividend policy

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    If a firm adheres strictly to the residual dividend policy, a sale of new common stock by the company would suggest that

    a)The dividend payout ratio has remained constant
    b)The dividend payout ratio in increasing
    c) No dividneds were paid during the year,
    d) The dividend payout ratio is decreasing

    © BrainMass Inc. brainmass.com October 1, 2020, 11:08 pm ad1c9bdddf

    Solution Summary

    The solution is very easy to understand and concise. It is an excellent response for students who want to understand the concepts and then use the same concepts to solve similar problems in the future. Overall, an excellent response. The solution provides the necessary steps which are easy to follow.