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What would company do if net income is less than financing

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Reference no: EM132954520

Problem 1: According to the residual dividend model, what would a company do if its net income is less than its financing needs for planned projects?

a.) Set a target payout ratio
b.) Distribute no cash dividends
c.) Distribute the same dividend as in the past, for the sake of consistency
d.) Determine if investors prefer cash of stock dividends

Reference no: EM132954520

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