Which one of the following favors a low dividend policy?

I) The tax on capital gains can be deferred until the gain is realized

II) Results in higher flotation cost

III) Dividend restrictions debt contracts might limit the percentage of income that can be paid out as dividends

IV) Preferred by firms in high growth industry and has many investment opportunities.

V) Preferred by pension funds, retirees, and college endowment funds

A) I only

B) I and II only

C) I,II,III only

D) I,III, and IV only

E) I,II,III,IV and V