The Residual Dividend Approach Is Based on the Premise That

The residual dividend approach is based on the premise that:

A) The sale of new equity is a desirable alternative to altering dividend payout.
B) Maintaining a predictable dividend payout is not a primary objective.
C) Dividends on preferred stock must be paid first with common shareholders getting what's leftover; that is, the residual.
D) A clientele effect exists.
E) A firm's investment needs are of secondary concern to its dividend policy.