Which Two of the Following Are Possible Results of the Existence

Multiple Choice

Which two of the following are possible results of the existence of transaction costs?

A) Mature 'cash cow' type firms choose a high payout rate.
B) Dividends tend to gradually decrease during a firm's lifetime.
C) Many young, rapidly growing firms with a need for investment finance have very low dividend payouts.
D) Smaller companies tend to have higher dividends.