Dividend Reinvestment Schemes Are a Significant Source of Equity for Many

Dividend reinvestment schemes are a significant source of equity for many Australian companies.Which of the following advantages of dividend reinvestment schemes may,at times,also be regarded as a disadvantage?

A) The shareholder avoids transaction costs on the share issue.
B) The share issue price is usually at a discount to the average market price.
C) Such schemes allow dividends to be paid while retaining cash for future growth.
D) The company is able to pass on franking credit to its shareholders.