Dividend policy is relevant because: O shareholders apply a lower discount rate to yield a lower valuation to funds retained in the business as opposed to paid out. O shareholders apply a lower discount rate to yield a higher valuation to funds retained in the business as opposed to paid out. O shareholders apply a higher discount rate to yield a higher valuation to funds retained in the business as opposed to paid out. O shareholders apply a higher discount rate to yield a lower valuation to funds retained in the business as opposed to paid out