A strict residual dividend policy: tends to produce higher dividend payout ratios for high-growth firms...

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Finance

A strict residual dividend policy:

tends to produce higher dividend payout ratios for high-growth firms versus low-growth firms. tends to produce steady, predictable dividend payments. is best suited to cyclical firms who prefer steady dividends. adds great uncertainty to the payment of future dividends. guarantees that a minimal amount will be paid as a dividend on a quarterly basis.

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