Firms following the constant payout ratio dividend policy: Oa.will have a lower cost of retained earning when earnings are volatile compared to other similar firms. Ob.will have a fluctuating dividend payment when earnings fluctuate. Oc. will have a fluctuating dividend payment when earnings are stable. Od.will have a stable dividend payment when earnings fluctuate. Oe. will have a higher cost of equity when earnings are stable compared to other similar firms