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Which one of the following statements is correct? A. Firms prefer to cut dividend payments rather than borrow money to fund a short-term cash need.

Which one of the following statements is correct?

A. Firms prefer to cut dividend payments rather than borrow money to fund a short-term cash need.

B. Share repurchases tend to increase agency costs.

C. Maintaining a steady dividend is a key goal of most dividend-paying firms.

D. Tax rates are the key factor in determining a firm's dividend policy.

I also want to know the reasons :)

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