Which of the Following Statements Is FALSE

question 10

Multiple Choice

Which of the following statements is FALSE?

• A)When a firm pays a dividend,shareholders are taxed according to the dividend tax rate.If the firm repurchases shares instead,and shareholders sell shares to create a homemade dividend,the homemade dividend will be taxed according to the capital gains tax rate.
• B)When the tax rate on dividends exceeds the tax rate on capital gains,shareholders will pay lower taxes if a firm uses share repurchases for all payouts rather than dividends.
• C)Firms that use dividends will have to pay a lower after-tax return to offer their investors the same pre-tax return as firms that use share repurchases.
• D)The optimal dividend policy when the dividend tax rate exceeds the capital gain tax rate is to pay no dividends at all.

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Definitions:

Deep-Breathing Techniques

Practices that involve deliberate deep inhalation and exhalation to promote relaxation, improve lung function, and decrease stress.

Hiatal Hernia

A condition in which part of the stomach protrudes through the diaphragm into the chest cavity, often causing heartburn.

Postanesthesia Care Unit (PACU)

A specialized hospital area where patients recover from anesthesia after surgery, closely monitored by health professionals.

Postsurgical Unit

is a specialized hospital ward where patients are cared for after undergoing surgery, focusing on recovery and monitoring.