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The Residual Dividend Model is rarely used in practice

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The Residual Dividend Model is rarely used in practice. Instead companies
use this model to set a maximum dividend. Why is this?
Question options: MORE THAN 1 ANSWER CAN BE RIGHT

A)The residual dividend model results in a volatile dividend.

B)There is no Cliental for the residual dividend model.

C)Stock investors like constantly changing dividends

D)Stock investors like stable predictable dividends.

 
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