Which one of the following statements is correct?

Companies prefer to cut dividend payments rather than borrow money to fund a

short$-$term cash need.

Share repurchases tend to increase agency costs.

Maintaining a steady dividend is a key goal of most dividend$-$paying companies.

Short$-$term fluctuations in cash flows are the key factor in determining a

company's dividend policy.

Stock prices tend to ignore unexpected changes in dividend payments.