Which of the following statements is most plausible?

A) Increases in stock price associated with a dividend increase are likely due to information conveyed by the increase.
B) Increases in stock price associated with a dividend increase are likely due to changes in the company's capital structure.
C) Increases in stock price associated with a dividend increase are likely due to investors' preference for dividends over capital gains.
D) Increases in stock price associated with a dividend increase are likely due to the favorable tax treatment of dividends over capital gains.

Answer: A