Question 11 5 points Save Answer Which of the following statements about dividend policies is CORRECT? O a One reason that companies tend to favor distributing excess cash as dividends rather than by repurchasing stock is that dividends are normally taxed at a lower rate than gains on repurchased stock b. Miller and Modigliani argued that investors prefer dividends to capital gains because dividends are more certain than capital gains. They call this the bird in the hand" effect. c. The clientele effect suggests that companies should follow a stable dividend policy, od One key advantage of the residual dividend model is that it enables a company to follow a stable dividend policy Oe One advantage of dividend reinvestment plans is that they allow stareholders to delay paying taxes on the dividends that they choose to reinvest