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What does the residual dividend model mean for investors

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Reference no: EM132739813

Problem 1: What does the residual dividend model mean for investors?

Option 1: They should expect to always receive very small dividends.
Option 2: They should expect a level of uncertainty regarding their dividends.
Option 3: They should expect to consistently receive the same dividend.
Option 4: They should expect dividend distributions that are equal to net income.

Reference no: EM132739813

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