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Which of the following statements best describes a residual dividend policy?

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Which of the following statements best describes a residual dividend policy?

A.

Dividends are paid only after the on-going operational needs of the business have been met.

B.

Dividends are paid only if no further positive NPV projects are available.

C.

All surplus earnings are invested back into the business.

D.

Dividends are paid at a constant rate.

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