It has been argued by the journalist that utility companies must not be permitted to pay cash dividends. His reasoning is that it would decrease their need to raise external capital, thereby decreasing their transaction costs and finally lowering their cost of capital. These savings would at last be passed on to customers in form of lower utility rates. Stockholders would get capital gains instead of cash dividends and as of lower tax rates and deferrals related with capital investments; it would finally lower their taxes. So it is win-win for all parties involved. Is this logical argument? Describe your reasoning.