Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. given the same personal tax rate on dividends and

Given the same personal tax rate on dividends and capital gains, a stock repurchase: a....

80.2K

Verified Solution

Question

Accounting

Given the same personal tax rate on dividends and capital gains, a stock repurchase:

a. creates a personal tax liability for the investor equivalent to that of a dividend.

b. creates a personal tax liability for the investor that is lower than that of a dividend. THIS IS Correct

c. Creates a personal tax liability for the investor that is higher than that of a dividend.

d. is more highly taxed than a cash dividend.

e. creates a tax liability even if the investor does not sell any of the shares he owns.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

24 Let f x 1 1 What is the point of maximum growth rate for...

Algebra
Q

Solve the initial value problem.y"'-4y"-4y' +16y=0; y(0) = 5, ...

Algebra
Q

An equally weighted portfolio consists of 22 assets which all have a standard deviation of 0.154....

Finance
Q

Expatiate on the duties of the seller to the buyer in a contract for sale of...

General Management
Q

Sixty five percent of adults favor some kind of government control on the prices of...

Basic Math
Q

Score for Question 2 of 4 points 4 2 v 9 2 is transformed using...

Algebra
Q

Simplify each expression 35m 65n 10 28n 4n 1 A 10m n 1 C 3...

Algebra
Q

AQ= Actual Quantity

Accounting
Q

For the company Apple, look up the following information on yahoo finance. Looking at the...

Accounting
Q

Shoes-to-Go sells single shoes, either right-foot or left-foot, which its owner, Mike, finds alongside major...

Accounting
Q

Copr. Goedl Data concerning Cincinnati Supply Corp.'s, a supplier to Kraft Foods, single product appear...

Accounting
Q

The spot rate for the British pound currently is .55 per $1. The one-year forward...

Finance