What is Residual Dividend Model?
In practical questions, there is one talking about Residual Dividend Model, and it says Residual Dividend Model allows firms to pay out dividends only if more earnings are available than are needed to support the optimal capital budget. Does it mean that RDM is only working when the firm has extra earnings? I cannot find this concept in the notes and is it covered in the exam?
Thank you
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发表于 2007-11-13 00:48
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