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Business, 30.04.2021 20:00 nook4boo

If a firm adheres strictly to the residual dividend policy, then if its optimal capital budget requires the use of all earnings for a given year (along with new debt according to the optimal debt/total assets ratio), then the firm should pay Group of answer choices dividends only out of funds raised by the sale of new common stock. dividends only out of funds raised by selling off fixed assets. no dividends to common stockholders. dividends only out of funds raised by borrowing money (i. e., issue debt).

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