3. Which of the following statements regarding the comparison between cash dividends and share repurchases is NOT CORRECT? a. A firm's distribution policy itself does not influence its future free cash flows, but it may influence investors' perception of its future free cash flows. b. Paying dividends can reduce the free cash flow at the discretion of self-interested managers and hence mitigate the agency problem. C. Investors view dividends as more dependable than capital gains, and as a result they favor dividends over capital gains. d. The clientele effect theory suggests that it is often a bad idea to change a firm's distribution policy