A Strict Residual Dividend Policy

A strict residual dividend policy:

A) Tends to produce higher dividend payout ratios for high-growth firms versus low-growth firms.
B) Tends to produce steady, predictable dividend payments.
C) Is best suited to cyclical firms who prefer steady dividends.
D) Adds considerable uncertainty to the payment of future dividends.
E) Guarantees that a minimal amount will be paid as a dividend on a quarterly basis.