Concept Checkers Dividend Policy

Under the residual dividend model, firms would do all of the following EXCEPT A. determine their optimal capital budgets. B. borrow money to maintain the dividend payout schedule. C. determine the amount of equity needed to meet the capital budget. D. pay dividends only if more earnings are available than needed to support the optimal capital budget. 2. Which of the following statements about dividends is TRUE A. Dividend irrelevance means that investors prefer dividends to capital gains. B....