Which argument is based on the assumption of john lintner

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Question 1: Myron Gordon and John Lintner believe that the required return on equity increases as the dividend payout ratio is decreased. Their argument is based on the assumption that:

Option A. investors are indifferent between dividends and capital gains.

Option B. investors require that the dividend yield and capital gains yield equal a constant.

Option C. investors value a dollar of expected capital gains more highly than a dollar of expected dividends because of the lower tax rate on capital gains.

Option D. investors view dividends as being less risky than potential future capital gains.

Option E. None of the above

Reference no: EM132627537

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