Which of the following statements is correct?

	a.	Large stock repurchases financed by debt tend to increase earnings per share, but they also increase the firms financial risk.
	b.	Current Canadian tax law encourages companies to pay dividends rather than retain earnings.
	c.	The stronger management thinks the clientele effect is, the more likely the firm is to adopt a strict version of the residual dividend model.
	d.	If a company uses the residual dividend model to determine its dividend payments, dividend payouts will tend to increase whenever the companys profitable investment opportunities increase.

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