Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) In times of rising prices, companies should retain profit to maintain the same level of operation
B) Investors prefer to see steady increase in dividend instead of receiving large dividend pay outs in profitable years and smaller pay outs in less profitable years
C) Shareholders expect companies to pay out very large dividends in profitable years
D) There are often good reasons for not paying out a dividend