Implications of Bird-in-the-Hand Theory

In the context of corporate finance, different theories exist concerning the impact of dividend policy on a company's valuation. Two prominent theories are the Miller-Modigliani theorem and the bird-in-the-hand theory. According to these theories, the decision on whether to pay dividends or to reinvest profits affects a firm's stock price and investor behavior.

Which of the following statements best describes the implications of the bird-in-the-hand theory relative to dividend policy?