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Q99 Single choice

A firm's dividend policy may treat dividends either as the residual part of a financing decision or as an active policy strategy. Treating dividends as the residual part of a financing decision assumes that

A
Earnings should be retained and reinvested as long as profitable projects are available.
B
Dividends are important to shareholders, and any earnings left over after paying dividends should be invested in high-return assets
C
Dividend payments should be consistent.
D
Dividends are relevant to a financing decision.

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