Statements related to dividend policy

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Which one of the following statements related to dividend policy is correct?

The primary question related to dividend policy is whether or not a firm should ever pay a dividend.

Both dividends and dividend policy are irrelevant.

Dividend policy focuses on the timing of dividend payments.

Homemade dividends increase the importance of a firm's dividend policy decisions.

Whether or not a firm ever pays a dividend is irrelevant to equity valuation.

Reference no: EM13953687

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