The theory supporting dividends$-$based valuation is

A$.$ dividends are value$-$relevant to common equity shareholders because the dividends are cash

flows directly to the equity shareholders.

B$.$ dividends represent the free cash flows into the firm.

C$.$ dividends are established by the policies of the managers and the board of directors of the firm.

D$.$ dividends are equivalent to the difference between the comprehensive income and the required

income $("$normal earnings"$)$ of the firm.