The Fact That Flotation Costs Can Be Significant Is Justification

The fact that flotation costs can be significant is justification for

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

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