If a Firm Adheres Strictly to the Residual Dividend Model,the

Multiple Choice

If a firm adheres strictly to the residual dividend model,the issuance of new common stock would suggest that

A) the dividend payout ratio has remained constant.
B) the dividend payout ratio is increasing.
C) no dividends will be paid during the year.
D) the dividend payout ratio is decreasing.
E) the dollar amount of capital investments had decreased.