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Which of the following statements is correct? Group of answer choices If a company uses the residual dividend model to determine its dividend payments, dividends

Which of the following statements is correct?

Group of answer choices

If a company uses the residual dividend model to determine its dividend payments, dividends payout will tend to increase whenever its profitable investment opportunities increase.

A high participation rate in a Dividend Reinvestment Plan (DRIP) suggests that stockholders might be better off if the firm simply increased cash dividends.

An investors capital gains from selling stock in a repurchase are always taxed at a higher rate than if the distribution were dividends.

It is good practice for a company to be consistent with its dividend policy.

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