Which of the following would be considered an alternative dividend policy?
I. Passive residual approach
II. Increasing dollar dividend approach
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Question

Which of the following would be considered an alternative dividend policy? 
I. Passive residual approach
II. Increasing dollar dividend approach
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Quizplus · Accepted Answer

The passive residual approach is an alternative dividend policy, while the increasing dollar dividend approach is not considered an alternative policy but rather a traditional dividend policy.

Which of the Following Would Be Considered an Alternative Dividend