If a firm adheres strictly to their residual distribution, Accounting Basics

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If a firm adheres strictly to their residual distribution

if a firm adheres strictly to their residual distribution policy with all distributions in the form of dividends, what would the sale of new common stock by the company suggest? You said no the answer is no dividends were paid. Can you please explain why?

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Accounting Basics: If a firm adheres strictly to their residual distribution

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Accounting Basics: If a firm adheres strictly to their residual distribution

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