Statements lends support to dividend irrelevance

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Reference no: EM131563035

Which of the following statements lends support to dividend irrelevance rather than to dividend relevance theory?

A. Dividends are believed to signal information to the market

B. Shareholders can create their own dividends by selling their shares

C. Companies may build up a clientele of shareholders due to their dividend policy

D. Investors prefer the certainty of dividends due to the uncertainty of capital gains

Please elaborate on the answer

Reference no: EM131563035

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