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    Dividend Policy

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    Discuss the advantages, disadvantages, and types of firms (e.g. growth oriented, mature, etc.) that might be likely to adopt each type of the following dividend policies:
    · Residual dividend policy
    · Constant payout ratio dividend policy
    · Regular dividend policy
    · Low-regular-an-extra-dividend policy

    © BrainMass Inc. brainmass.com October 9, 2019, 8:53 pm ad1c9bdddf
    https://brainmass.com/business/dividends-stock-repurchase-and-policy/dividend-policy-165932

    Solution Preview

    Discuss the advantages, disadvantages, and types of firms (e.g. growth oriented, mature, etc.) that might be likely to adopt each type of the following dividend policies:
    ? Residual dividend policy
    ? Constant payout ratio dividend policy
    ? Regular dividend policy
    ? Low-regular-an-extra-dividend policy

    Answer:
    Residual dividend policy
    The residual dividend policy suggests that dividend payments should be viewed as residual?the amount left over after all acceptable investment opportunities have been undertaken. This policy suggests that no cash dividend is paid as long as the firm's equity need is in ...

    Solution Summary

    The solution discusses the advantages, disadvantages, and types of firms (e.g. growth oriented, mature, etc.) that might be likely to adopt Residual dividend policy, Constant payout ratio dividend policy, Regular dividend policy, Low-regular-and-extra-dividend policy

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