Grainery Distiller, Inc. is experiencing high demand for its product and high growt rates. The company just reported earnings per share of $5 for the most recent year and has many positive NPV projects to fund. One VP wants to pay a dividend fo $5 per share, arguing that this will maimize shareholder value. You argue that a much smaller dividend will maximize value. Your argument may be based on:
A-The bird in the hand theory
B-The very high agency costs of the corporation
C-The information effect
D-The residual dividend theory