If the Marginal Tax Rate on Capital Gains Is Less

If the marginal tax rate on capital gains is less than the marginal tax rate on dividends, a tax conscious investor will:

A) Prefer a low dividend payout since realized capital gains can be deferred indefinitely.
B) Prefer a low dividend payout because the taxes on dividends can be deferred indefinitely.
C) Prefer a high dividend payout if they do not have a need for current income.
D) Prefer a high dividend payout since dividends are considered ordinary income but capital gains are not.
E) Search for firms with high dividend growth rates.