Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) In a reverse split,a company reduces the number of shares outstanding in order to stabilize and provide a floor for a rapidly declining stock price.
B) In theory,dividends are determined as a residual item.Therefore,in order to conserve earnings for better future earnings opportunities,the poorer the firm's investment opportunities,the lower its dividend payments should be.
C) The farther to the right the IOS is the higher a firm's dividend payout ratio,other things held constant.
D) Even if a stock split has no information content,and even if the dividend per share adjusted for the split does not increase,there can still be a real benefit (i.e. ,a higher value for shareholders) from such a split,but any such benefit is probably small.