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Ricky McCants Jr
on Dec 09, 2024

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Maintaining the current capital structure is consistent with both a residual and a compromise dividend policy.

Capital Structure

The mixture of debt and equity financing that a company uses to fund its operations and growth.

Residual Dividend

A policy under which a company pays dividends to its shareholders only after all its capital needs are met for a particular period.

Compromise Dividend

A dividend payment agreed upon by a company and its shareholders to be distributed, usually under circumstances where the payment amount may not meet all parties’ expectations but is deemed acceptable.

  • Understand the different dividend policies and their implications.
  • Assess the impact of dividend policy on a firm’s capital structure.
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Lorna LovettDec 15, 2024
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