Which of the Following May Tend to Keep Dividends Low

Multiple Choice

Which of the following may tend to keep dividends low?
I. A state law restricting dividends in excess of retained earnings
II. A term contained in bond indenture agreements
III. The desire to maintain constant dividends over time
IV. Flotation costs

A) II and III only
B) I and IV only
C) II, III, and IV only
D) I, II, and III only
E) I, II, III, and IV