This is one question but couldn't capture it in one shot.Please attempt to answer it correctly. Thanks

9. Factors that influence dividend policy Aa Aa Distribution decisions are complicated and involve the understanding of critical strategic factors that affect the policy and value of a firm. Thus, the management of any firm has to consider the constraints on dividend payments, the availability and cost of alternative sources of capital, and other external factors when they create and implement their distribution policy. Consider the following restriction: Limits set by the IRS on the amount of eamings a firm can retain for reasons that help individuals gain special benefits Based on your understanding of the constraints on dividend payments, identify the type of constraint this condition represents. Assume that all other factors are held constant. O Impairment of capital rule O Option contract O Penalty tax O Bond indentures