According to the residual dividend payout policy,dividends are considered a residual after

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According to the residual dividend payout policy, dividends are paid out of the residual earnings after the company has met its investment financing needs. This means that the company will first use its earnings to fund its capital expenditures and other investment needs, and then pay dividends with the remaining earnings.

According to the Residual Dividend Payout Policy,dividends Are Considered a Residual