Question: Which statement is correct? A - shareholders like dividends because it is the only way that they can get their hands on cash. B -

Which statement is correct?

A - shareholders like dividends because it is the only way that they can get their hands on cash.

B - if capital investment and capital structure are held constant, smaller dividends mean larger repurchases.

C - when valuing free cash flow per share it is important to include both dividends per share and the cash received from repurchases.

D - the dividend discount model is no longer applicable when there are stock repurchases.

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