The rational expectations model of dividend policy says that ______________.

• A. ince the expectations of the investors are always rational, there will be no effect of dividend policy on the valuation of the firm
• B. f the investors have rational expectations, they will value a dividend paying firm higher than a non-dividend paying firm
• C. f the declared dividend is in line with expectations of the investors, there will be no effect on the valuation of the firm
• D. f the declared dividend is in accordance with the expectations, the change in the firms value will be minimal