The Clientele Argument in Dividend Theory Implies That

Multiple Choice

The clientele argument in dividend theory implies that:

A) investors are indifferent between dividends and capital gains.
B) firms should pay out dividends only after accepting all capital budgeting projects with positive NPVs.
C) the stock of low-payout firms will be held by investors seeking capital gains.
D) the dividend payout should be set equal to the industry average.