Which of the Following Statements Is Not Considered a Potential

Which of the following statements is not considered a potential answer to the question of why corporations pay dividends?

A) Paying dividends avoids the double taxation of corporate income.
B) Dividends are a signal to the capital markets about the health of a corporation's activities.
C) Paying dividends is a source of investor goodwill.
D) Demanding that managers pay out dividends restricts their investment activities and forces them to adopt more efficient investment policies.