Investors would agree with a decision to reduce the cash they receive from current dividends so long as this pool pf retained (undistributed) earnings is re-invested in the firm at a rate of return on invested capital that is :

A. Greater than zero

B. Greater than the investors opportunity cost/ discount rate

C. Less than the investors opportunity cost/discount rate but above 5%

1. A and C are true

2. None of these are true

3. Only B is true

4. Only A is true

5. Only C is true