1. What is the correct implication for the following dividendtheories?

1. MM dividend irrelevance theory suggests a higher dividendpolicy.
2. Bird-in-the-hand theory assumes that investors do not valuedividend, thus suggests a lower dividend policy.
3. Tax-aversion theory assumes that dividend tax is higher thancapital gain tax, thus suggests a lower dividend policy.
4. Signaling theory suggests that firms should pay lower andunstable dividend.