When firms' earnings fluctuate,they tend to adjust their payout policy by ________.
A) allowing dividends to fluctuate while holding share repurchases relatively steady
B) allowing share repurchases to fluctuate while holding dividends relatively steady
C) adjusted both dividends and share repurchases so the total payout as a percentage of earnings remains relatively steady
D) stop paying dividends and repurchasing shares
Correct Answer:
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