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:

Systems Level

A perspective or approach that considers the broader, interconnected components of a whole rather than focusing on individual parts.

Adequate Funding

Sufficient financial resources provided to fully support or complete a project, program, or initiative without monetary constraints.

Central Agency

A government or administrative organization that operates at the central level of government, typically responsible for overseeing and implementing policies across various sectors.

Kurt Lewin

A psychologist often considered the founder of social psychology, known for his field theory and change management theories.