Which of the Following Statements Is False

Which of the following statements is false?

A) From an accounting perspective, dividends generally reduce the firm's current (or accumulated) retained earnings.
B) The way a firm chooses between paying dividends and retaining earnings is referred to as its payout policy.
C) Most companies that pay dividends pay them semi-annually.
D) Occasionally, a firm may pay a one-time, special dividend that is usually much larger than a regular dividend.

Correct Answer:

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