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mdfb79

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tT
发表于 2011-7-11 19:47 | 只看该作者

Residual Dividend policy

policy, therefore, understand, should
In EOC Q 13, Reading 31, page 180, I dont understand the answer. According to my understanding of residual dividend, the answer should be

25 - (15*0.65) = 15.25 and therefore, dividend payout ratio = 15.25/25 = 61%?

 

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troymo

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发表于 2011-7-11 19:47 | 只看该作者
The key here is..

"to be entirely funded out of earnings."

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