The Residual Theory of Dividends Suggests That ________

Multiple Choice

The residual theory of dividends suggests that ________.

A) different payout policies attract different types of investors but still do not change the value of a firm
B) dividends are irrelevant in determining the value of a firm
C) as long as a firm's equity need exceeds the amount of retained earnings, no cash dividend is paid
D) the payout policies of different firms have no impact on the taxes that investors have to pay