Which of the following statements is correct?

A) Stock repurchases make the most sense at times when a company believes its stock is undervalued

B) one advantage of the residual dividend policy is that it leads to a stable dividend payout, with investors like

C) an increase in the stock price when a company decreases its dividend is consistent with signaling theory as postulated by MM

D) firms with a lot of good investment opportunities and a relatively small amount of cash tend to have above average payout ratios