Residual theory: Difference between revisions
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''Corporate finance''. | ''Corporate finance''. | ||
The residual theory relates to dividend policy. It states that a company should always invest in positive Net present value (NPV) projects, and then pay out any remaining surplus cash as dividends. | |||
The residual theory relates to dividend policy. | |||
It states that a company should always invest in positive Net present value (NPV) projects, and then pay out any remaining surplus cash as dividends. | |||
== See also == | == See also == | ||
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* [[Lintner]] | * [[Lintner]] | ||
* [[Net present value]] | * [[Net present value]] | ||
[[Category:Corporate_finance]] | |||
Latest revision as of 08:33, 2 July 2022
Corporate finance.
The residual theory relates to dividend policy.
It states that a company should always invest in positive Net present value (NPV) projects, and then pay out any remaining surplus cash as dividends.
