Which of the Following Statements Would Be Consistent with the Bird-In-The-Hand

Multiple Choice

Which of the following statements would be consistent with the bird-in-the-hand dividend theory?

A) Investors are indifferent whether stock returns come from dividend income or capital gains income.
B) Dividends are more certain than capital gains income.
C) Wealthy investors prefer corporations to defer dividend payments because capital gains produce greater after-tax income.
D) Dividends are less certain than capital gains.