The "bird-in-the-hand" dividend theory suggests that?

1-high dividends increase stock value because shareholders are more certain of the dividend yield than of potential future capital gains.

2-high dividends increase stock value because capital markets are inefficient and dividends are the only sure way to get money from an equity investment.

3-high dividends decrease stock value because dividend payments take money out of the corporate "nest" and reduce the ability of the corporation to function effectively.

4-high dividends increase stock value because shareholders believe they can earn a higher return than the company