Asked by Griffinn Kluth on May 09, 2024
Verified
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.
Verified Answer
YZ
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.
Learning Objectives
- Absorb and delineate significant financial terminologies connected with dividend approaches and stock operations.
Related questions
Provide a Definition for the Term Information Content Effect
Based on the Homemade Dividend Argument, Dividend Policy Is Irrelevant
In a World with No Taxes or Transaction Costs, Dividend ...
The Framer Corporation Has Been Doing Poorly for Several Years ...
Each Year, Alexandra Receives a Payment for the Stock She ...