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According to the free cash flow hypothesis that has been proposed to explain investors' reactions to dividend policy changes, a firm: OA. should pay out
According to the free cash flow hypothesis that has been proposed to explain investors' reactions to dividend policy changes, a firm: OA. should pay out all earnings that it can reinvest in acceptable capital budgeting projects. B. should never distribute its free cash flows, because these funds represent money the firm is free to invest as it pleases OC. that retains free cash flows has a higher value than a firm that distributes its free cash flows to stockholders. OD. should pay dividends when it has cash flows that exceed its capital budgeting needs. E should distribute earnings based solely on investors preferences to whether they prefer current income or future income. Bestela Previous Next Save % & 3 5 6 7 8
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