Which of the Following May Explain Why Firms Pay Dividends

Which of the following may explain why firms pay dividends instead of simply repurchasing shares?

A) The payment of dividends reduces the free cash flow available for managers to use on projects that may reduce firm value, so the cost of equity capital will be reduced;
Repurchasing shares does not have the same effect.
B) Managers who also own shares of the firm through the exercise of stock options prefer higher dividend payouts to lower dividend payouts.
C) Investors are able to keep more money after paying taxes on dividend income than they can if they sell their shares back to the firm.
D) A dividend is cash-in-hand, which investors may prefer given the fraudulent practices that have taken place in many large, formerly well-respected firms in recent history.