Everything Else Equal, If Stockholders Prefer Current Income to Future

Multiple Choice

Everything else equal, if stockholders prefer current income to future income (i.e., capital gains) , a firm's cost of equity will:

A) decrease if its dividend payout increases.
B) decrease if its eliminates all dividend payments.
C) decrease if its excess (free) cash increases.
D) decrease if management promotes its wishes to restrict ownership in the firm.
E) increase if debt restrictions decrease.