Myron Gordon and John Lintner Believe That the Required Return

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 what assumption?

A) that investors require that the dividend yield and capital gains yield equal a constant
B) that capital gains are taxed at a higher rate than dividends
C) that investors view dividends as being less risky than potential future capital gains
D) that 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