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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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