Cash dividends send which of the following signals to the market? a. agency costs will be raised since the firm will have less flexibilityb. the firm is planning on downsizingc. the firm is currently, and expects to continue to be, profitabled. the firm will no longer conduct stock repurchases

Option C

Explanation: Cash dividends refers to the return that the equity and preference shareholders get on behalf of investing in the organisation and bearing the risk.

It is distributed from the earning  of the year. Distribution of cash dividend is a good sign as it depicts that even after distributing the cash to the shareholders company is left with the liquidity.

This shows company have plenty of funds and will be profitable to invest in future as well.

answer; i believe a ( newsletter ) should be sent;