Share Repurchases Have a Tax Advantage Over Dividends Because

question 80

Multiple Choice

Share repurchases have a tax advantage over dividends because:

• A)dividend payments are tax deductible.
• B)share repurchases increase the value of debt.
• C)capital gains can be deferred by long-term investors.
• D)repurchases are associated with increased customer loyalty.
• E)dividends are not taxed.

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Definitions:

Unethical Practices

Actions or behaviors that are considered morally wrong or unethical within the context of business, including dishonesty, fraud, and exploiting workers.

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Permission granted in the knowledge of the possible consequences.

Transparency

The practice of being open, honest, and straightforward about various activities or operations, especially in a business context.

Informed Consent

The process through which an individual is provided with sufficient information regarding a medical treatment or experiment to make a knowledgeable decision to participate.