The Central Predictions of the Agency Cost/contracting Model of Dividend

The central predictions of the agency cost/contracting model of dividend payments include:

A) Dividend initiations and increases should lead to increases in the firm's stock price when announced.
B) Firms and industries that generate the largest amounts of free cash flow should have the highest dividend payout ratios.
C) Managerial compensation contracts will be designed to entice managers to pursue a value-maximizing dividend policy.
D) All of the above
E) Only (a) and (b)