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A firm's dividend policy may treat dividends either as the residual part of a financing decision or as an active policy strategy. Treating dividends as an active policy strategy assumes that A. Dividends are irrelevant. B. Dividends provide information to the market. C. The firm should pay dividends only after investing in all investment opportunities having an expected return greater than the cost of capital. D. Dividends are costly, and the firm should retain earnings and issue stock dividends.
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