39.A company's dividend policy is based on a strict residual model. All other factors being equal, if the company's dividend payout decreased from 50 percent in 2001 to 20 percent in 2002, the company most likely experienced: Select exactly 1 answers from the following: A. a decrease in investment opportunities. B. an increase in investment opportunities. C. no change in investment opportunities, but an increase in the targeted debt-to-assets ratio. D. no change in investment opportunities, but an increase in the weighted average cost of capital. 答案和详解如下!
Feedback: Correct answer: B
Fundamentals of Financial Management, 8th edition, Eugene F. Brigham and Joel F. Houston (Dryden, 1998), pp. 550?55 2006 Modular Level I, Vol. III, pp. 195-200 Study Session 11-51-e describe the residual dividend model, and discuss the model抯 possible advantages or disadvantages to the company
A dividend policy based on a strict residual model means the firm pays dividends only if it has earnings above the amount required to fund its optimal capital budget; all else equal, the greater the investment opportunities, the lower the dividend payout.
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