Which of the following statements accurately describe the reason(s) why dividend policy is important? Paying dividends increases firm value because shareholders bear less risk by receiving dividends instead of selling shares to realize capital gains. Under imputation tax system, firms should pay as much franked dividends as possible because shareholders always prefer franked dividends over capital gains. None of the other statements accurately describe a reason(s) why dividend policy is important More than one of the other statements accurately describe a reason(s) why dividend policy is important. Increase in dividends is normally used to signal the market that the mangers believe the company has poor prospects in the foreseeable future