The Fact That Flotation Costs Can Be Significant Is an Argument

The fact that flotation costs can be significant is an argument for:

A) issuing larger regular dividends than the industry norm.
B) maintaining a constant dividend policy even if the firm frequently has to issue new shares.
C) periodic extra dividend payments.
D) maintaining a constant dividend policy even when profits decline significantly.
E) maintaining a low dividend policy and rarely issuing extra dividends.

Correct Answer:

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