In Considering the Arguments for the Relevance of Dividends, Which

Multiple Choice

In considering the arguments for the relevance of dividends, which of the following statements is (are) correct?
I. Shareholders who are risk averse may prefer some dividends over the promise of future capital gains.
II. Flotation costs on new stock sales make dividend payout more desirable, rather than issuing new stock.

A) I only
B) II only
C) Both I and II
D) Neither I nor II