The Fact That Flotation Costs Can Be Significant Is Justification

Multiple Choice

The fact that flotation costs can be significant is justification for:

A) a firm to issue larger dividends than its closest competitors.
B) a firm to maintain a constant dividend policy even if it frequently has to issue new shares of stock to do so.
C) maintaining a constant dividend policy even when profits decline significantly.
D) maintaining a high dividend policy.
E) maintaining a low dividend policy and rarely issuing extra dividends.