【英语课件 PPT】财务管理基础（14版） Block-Foundations of Financial Management 全套PPT课件chap01-chap016.ppt

Dividends as a Passive Variable Dividends are paid out only if the corporation cannot make better use of the funds for the benefit of stockholders Active decision variable is the retained earnings Residual (after fulfilling internal corporate expenses) is paid to stockholders An Incomplete Theory Residual theory of earnings with two options: Earnings retained and reinvested in the business Pay out as current dividends This theory does not consider the stockholders’ opinion on dividends If however, the stockholder prefers one over the other option, then this theory is incomplete Arguments for t