A Sensible Payout Policy

A sensible payout policy

A) sets dividends at a level just equal to the amount of new equity that can be raised annually.
B) sets dividends based on net income,not cash flows.
C) consistently varies its target payout ratio on an annual basis.
D) pays out all free cash flows over time.
E) cuts positive NPV investments,if needed,to steadily increase its dividend.

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