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:

Mainframes

High-performance computers used primarily by large organizations for bulk data processing, such as census, industry and consumer statistics, ERP, and financial transaction processing.

Big Data

A collection of data so large and complex that it is difficult to manage using traditional database management systems.

ROM

Read-Only Memory, a type of non-volatile storage that is used in computers and electronic devices to store firmware or application software in a way that is not easily or frequently altered.

Volatile

Refers to something that is highly unstable and can change rapidly, often used to describe financial markets or chemical substances.