Which of the Following Statements Is FALSE

question 39

Multiple Choice

Which of the following statements is FALSE?

• A)Unlike with capital structure,taxes are not an important market imperfection that influence a firm's decision to pay dividends or repurchase shares.
• B)If dividends are taxed at a higher rate than capital gains,which has been true until the most recent change to the tax code,shareholders will prefer share repurchases to dividends.
• C)Shareholders typically must pay taxes on the dividends they receive.They must also pay capital gains taxes when they sell their shares.
• D)Because long-term investors can defer the capital gains tax until they sell,there is still a tax advantage for share repurchases over dividends.

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Definitions:

Noise Level

The average volume of background noise in a given environment, often measured in decibels (dB).

Memory Attributes

Salient aspects of an event whose presence can lead to the retrieval of the past event.

State-Dependent Learning

Learning based on events experienced in one state; events will not be recalled if the subject is tested in a different state.

Intoxicated

The state of being impaired or experiencing altered physical and mental abilities due to the consumption of substances such as alcohol or drugs.