Which of the following statements are true? (Can be more than one true)

I. When the tax rate on capital gains is smaller than the tax rate on regular income, shareholders prefer the firm to repurchase shares instead of paying dividends.

II. A good argument in favor of dividends is the fact that, since they are paid in (riskless) cash, they are more valuable than risky capital gains.

III. Shareholders may like the firm to pay dividends, since they may help reduce monitoring costs.