Which of the Following Statements Is Not Considered a Potential

Which of the following statements is not considered a potential answer to the dividend puzzle (why do corporations pay dividends) ?

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