1. Trenton Publishing follows a strict residual dividend policy. All else equal (held constant), which of the following factors would be most likely to lead to an increase in the firms cash dividend per share?

A. Earnings are unchanged, but the firm issues new shares of common stock

B. The number of profitable potential project opportunities increases.

C. The company increases the percentage of equity in its target capital structure.

D. The government lowers the tax rate on capital gains but the remainder of the tax code, especially income taxes, is not changed.

E. The firms net profit margin increases.