Question 24 of 28 Which of the following is true about payout policy? A. When paying out dividends or buying back shares, stock price drops in each case. B. In a share buyback, investors are forced to sell some of their shares. C. Paying out cash is transferring money from the company to the shareholders. Thus, shareholders' wealth increase after firms pay out cash by the amount of cash paid out. D. None of the other three choices is true. Reset Selection