Which of the following statements best describes a residual dividend policy?

Which of the following statements best describes a residual dividend policy?
A . Dividends are paid only after the on-going operational needs of the business have been met.
B . Dividends are paid only if no further positive NPV projects are available.
C . All surplus earnings are invested back into the business.
D . Dividends are paid at a constant rate.

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Answer: B