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  3. Study Set
    Financial Management Theory and Practice Study Set 4
  4. Exam
    Exam 14: Distributions to Shareholders: Dividends and Repurchases
  5. Question
    If a Firm Adopts a Residual Distribution Policy, Distributions Are
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If a Firm Adopts a Residual Distribution Policy, Distributions Are

Question 40

Question 40

True/False

If a firm adopts a residual distribution policy, distributions are determined as a residual after funding the capital budget.Therefore, the better the firm's investment opportunities, the lower its payout ratio should be.

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