(Practical considerations in setting dividend pobion) The board of directors of Kensington Enterprises has decided to pary cash sinidends totaling $5 million in the firs quarter of the year. This payment represents the initiation of a cash dividend for the first time in compary history, and yout compary CFO has asked you to look into any rentrictions or constraints the firm might have in carrying out the plan Which of the following statements regarding the types of restrictions on dividend policy Kensington might face is fahe? (Select the best choice below) A. The firm should consider cutting dividends in those years when earnings are insulficient B. Certain legal restrictions can limit the amount of dividends a firm may pay C. The firm should consider earnings predictability as a factor that determines the ability of the firm to sustain the dividond payent D. The firm should consider whether paying a dividend will lead to the need to raise equily capital in the future, which could dilute cortrol of the firm by its current owners E. The firm's liquidity position has a direct bearing on its ability to pay dividends