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borteleto borteleto
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Posts: 2477
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5 years ago
The residual dividend theory suggests that dividends will only be paid
A) if the tax rate on capital gains is higher than the tax rate on dividends.
B) if the corporation has more positive NPV projects than it can fund.
C) if interest rates available to shareholders are higher than the required return on the company's stock.
D) if current retained earnings exceed the equity portion of the firm's capital budget.
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
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guzmanguzman
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5 years ago
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borteleto Author
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5 years ago
Marking this solved, moving on to the next...
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