Solved: Firms equity-amount of retained earnings, Accounting Basics

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Firms equity-amount of retained earnings

Question: According to the residual theory of dividends, if the firm's equity need is less than the amount of retained earnings, the firm would ___________

borrow to pay the cash dividend,
declare a dividend equal to the remaining balance,
pay no cash dividends,
or not need to consider its dividend policy

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Accounting Basics: Firms equity-amount of retained earnings

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Accounting Basics: Firms equity-amount of retained earnings

Reference No:- TGS01959028

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