Which of the Following Statements Is False

question 67

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) But 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:

Nonspeech Noise

Sounds in the environment that are not related to human speech, which can affect auditory processing or be used in auditory testing.

Segments Per Second

A measure of the rate at which data or processing segments are handled or transmitted in one second.

Overtones

The higher frequencies found in a sound, which add to its basic frequency, contributing to its timbre or quality.

Fundamental Frequency

The lowest frequency of a periodic waveform, representing the pitch of a sound or a signal.