All of the following are true regarding factors influencing the dividend policy except:

A. Investment opportunities when firms have large numbers of acceptable capital budgeting projects with low dividend-payout ratios.

B. Constraints on dividend payments have restrictions imposed by the IRS.

C. Ownership dilution when owners fear losing majority control of the company.

D. Alternative sources of capital when a firm needs to finance a given level of investments and flotation costs are low, the cost of external equity will be well below the cost of internal equity.