Which of the Following Is Generally NOT True of Stock

question 47

Multiple Choice

Which of the following is generally NOT true of stock repurchase plans?

• A)Stock repurchase plans effectively allow shareholders to choose their own dividend policy.
• B)Stockholders who sell all or part of their shares back to the firm as part of an announced stock repurchase plan pay taxes at an ordinary rate rather than the capital gains rate because the IRS recognizes these plans as thinly veiled attempts to reduce stockholder tax liabilities.
• C)About 30% of announced stock repurchase plans are fully completed.
• D)About 35% of announced stock repurchase plans are never started.

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Definitions:

Part-Time Job

Employment with fewer hours per week compared to a full-time position, often with flexible schedules.

Holistic Critical Thinking

An approach to critical thinking that considers the whole situation or argument rather than focusing on individual elements.

Scoring Rubric

A set of criteria and standards typically used in educational settings to grade assignments or performance tasks.

Close-Mindedness

A cognitive trait characterized by a reluctance or refusal to consider alternative perspectives, ideas, or evidence.