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.

Answer the following statement true (T) or false (F)


True

Business

You might also like to view...

Which of the following statements is true of the operations of multichannel retailers?

A. Most retailers have a common organization to manage all channels. B. Integrating various channel operations does not pose a major problem. C. They need to maintain a consistent image across channels. D. Similar assortments are often suitable for various channels. E. Competition does not have a significant impact on pricing.

Business

Credible commitments are tangible investments in the strategic relationship and involve spending money to improve the supplier's products or services provided to the customer.

Answer the following statement true (T) or false (F)

Business

This question has two parts; be sure to answer both. First, suppose you are recruiting for an executive assistant. The HR department has scheduled an appointment with a qualified candidate. Describe the right way to prepare for the interview and the three-step process for conducting an interview with the candidate. Next, give three examples of specific questions you might legally ask.

What will be an ideal response?

Business

The best measure of a firm's sustainable income is

a. net income. b. income from continuing operations. c. income before extraordinary items. d. income before extraordinary item and change in accounting principle.

Business