A utility company has been in existence for over 50 years. Its business is highly regulated. E.g. the company must apply for rate increases through a utility commission, which leads to low business risk and a steady stream of income. Investors in the utility are often retired people who use the dividends to pay their living expenses. Which of the three main dividend theories would apply to this utility company?

Group of answer choices

A) Tax Prefence Theory

B) Dividend Preference Theory

C) Dividend Irrelevance Theory

D) Signaling Theory