Asked by Griffinn Kluth on May 09, 2024

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Provide a definition for the term residual dividend approach.

Residual Dividend Approach

A policy for determining dividend payments whereby dividends are set as the earnings left over after funding the company's capital expenditure and working capital needs.

  • Absorb and delineate significant financial terminologies connected with dividend approaches and stock operations.
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Younis ZidanMay 12, 2024
Final Answer :
Policy where a firm pays dividends only after meeting its investment needs while maintaining a desired debt-to-equity ratio.