Dividends As An Active Decision Varlable Management must pay a dividend before investing in new projects A shortfall may arise and could be overcome in 1 of 3 possible ways reduce investment opportunities issue additional debt finance issue additional equityDividends As An Active Decision Variable ▪ Management must pay a dividend before investing in new projects. ▪ A shortfall may arise and could be overcome in 1 of 3 possible ways: –reduce investment opportunities; –issue additional debt finance; –issue additional equity