Dividends are value$-$relevant and we can value firms using the present value of expected future dividends.

However, a firm's dividend policy $($whether and when it pays dividends$)$ can be irrelevant for valuation under

a strong assumption. What is that strong assumption?

A$.$ The assumption of continuing growth after the forecast horizon

B$.$ The assumption that the firm will be liquidated at some time in the future

C$.$ The assumption that the firm always issues and repurchases shares for fair value

D$.$ The assumption that the firm will be able to reinvest capital that is not paid out in dividends, and

earn a rate of return equal to the investors' expected rate of return