What is the significance of the statement of changes in equity for investors?

The statement of changes in equity is significant for investors as it provides a detailed overview of how the components of equity have changed over a specific period. This includes contributions made by shareholders, such as stock issuances, as well as distributions to shareholders, such as dividends. By analyzing this statement, investors can gain valuable insights into the company's financing decisions, how it retains earnings, and its overall financial strategy regarding equity management. Understanding these changes helps investors assess the company's growth potential and the sustainability of its dividend policy. Therefore, option C is essential for investors seeking to understand the dynamics of a company's capital structure and its approach to managing shareholder equity.