Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 5 of 13
Which of the following is not a step in determining dividends under the residual theory of dividends?
B. determine the amount of equity necessary to meet the target capital structure
C. use retained earnings to fill the equity requirement to the extent possible
D. determine the amount of external financing necessary to maintain a target payout ratio
A. determine the optimal capital budget
B. determine the amount of equity necessary to meet the target capital structure
C. use retained earnings to fill the equity requirement to the extent possible
D. determine the amount of external financing necessary to maintain a target payout ratio
User Contributed Comments 0
You need to log in first to add your comment.
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
compare stable dividend with constant dividend payout ratio, and calculate the dividend under each policy;
describe broad trends in corporate payout policies;
CFA® 2025 Level II Curriculum, Volume 3, Module 16.