Which of the following is NOT a stated reason for following a sticky dividend policy?
A) Individuals who use the cash flow from dividends for current income do not like having their cash flow cut unexpectedly.
B) The market considers dividend payments a signal of the firm's health.A dividend cut may be considered bad news.
C) If managers pay dividends,they are constrained from paying dividends so large that cash dividends would come from legal capital.
D) All of the above are stated reasons for sticky dividend policy.
Correct Answer:
Verified
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