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:

Generalization Gradient

Refers to the decrease in response strength as stimuli become less similar to the conditioned stimulus in classical or operant conditioning.

Discriminative Stimulus

A stimulus in the presence of which a particular response will be reinforced, and in the absence of which that response will not be reinforced.

Reinforcement

An event (or termination of an event) that increases the frequency of the operant behavior that preceded it.

Attentional View

A theoretical perspective focused on how individuals allocate their attentional resources among various stimuli or tasks.