Firms Following a Constant Payout Ratio Dividend Policy

Firms following a constant payout ratio dividend policy

A) will have a stable dividend payment when earnings fluctuate.
B) will have a fluctuating dividend policy when earnings are stable.
C) will have a higher cost of equity when earnings are stable compared to other similar firms.
D) will have a lower cost of equity when earnings are stable compared to other similar firms.
E) will have a fluctuating dividend payment when earnings fluctuate.