Neptune Corporation is following the residual dividend policy with regard to the payment of cash dividends. Which of the statements below best describes that policy? common stock dividends should be a residual of the retention rate. common stock dividends should be a constant percentage of earnings per share. common stock dividends should be paid only after investment financing needs have been met. common stock dividends should be paid only after preferred dividends have been paid.
Neptune Corporation is following the residual dividend policy with regard to the payment of cash dividends. Which of the statements below best describes that policy? common stock dividends should be a residual of the retention rate. common stock dividends should be a constant percentage of earnings per share. common stock dividends should be paid only after investment financing needs have been met. common stock dividends should be paid only after preferred dividends have been paid.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Neptune Corporation is following the residual dividend policy with regard to the payment of
cash dividends. Which of the statements below best describes that policy?
common stock dividends should be a residual of the retention rate.
common stock dividends should be a constant percentage of earnings per share.
common stock dividends should be paid only after investment financing needs have been met.
common stock dividends should be paid only after preferred dividends have been paid.
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