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]]

Revision as of 14:34, 20 August 2013

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.


See also