"A company with a high dividend payout ratio is a better investment than a company with a low dividend payout ratio." Do you agree? Explain.

(A) Yes. An investor who has a short-term investment horizon and who likes current cash flow may prefer a stock with a high dividend payout ratio. A high ratio signals that the company is paying dividends because it has investment or growth opportunities.

(B) No. An investor who has a short-term investment horizon and who likes current cash flow may prefer a stock with a high dividend payout ratio. However, a high ratio may signal that the company is paying dividends because it does not have investment or growth opportunities.

(C) No. An investor who has a long-term investment horizon and who isn't concerned with current cash flow may prefer a stock with a high dividend payout ratio. However, a high ratio may signal that the company is paying dividends because it does not have investment or growth opportunities.

(D) Yes. An investor who has a long-term investment horizon and who isn't concerned with current cash flow may prefer a stock with a high dividend payout ratio. A high ratio signals that the company is paying dividends because it has investment or growth opportunities.