According to the ____ dividend policy, a firm that has more funds than it needs should pay a cash dividend to shareholders.
A) constant payout ratio
B) stable dollar
C) passive residual
D) reinvestment

Question

Quizplus · Accepted Answer

The passive residual dividend policy states that a firm should pay cash dividends only after meeting its investment needs. This means that any excess funds left after the investments are made should be distributed among the shareholders through the payment of dividends. Therefore, the correct choice is C.

According to the ____ Dividend Policy, a Firm That Has