Dividend policy may affect firm value because

I) there is an unsatisfied clientele that prefers dividends to capital gains;

II) there are sufficient loopholes in the tax system that wealthy shareholders can avoid taxes on dividends;

III) well-managed companies prefer to signal their worth by paying high dividends

Select one:

a. I only

b. I and II only

c. I and III only

d. II and III only

e. None of the above