Which of the Following Is Generally NOT TRUE of Stock

question 28

Multiple Choice

Which of the following is generally NOT TRUE of stock repurchase plans?

• A)Stock repurchase plans effectively allow shareholders to choose their own dividend policy.
• B)Stockholders who sell all or part of their shares back to the firm as part of an announced stock repurchase plan pay taxes at an ordinary rate rather than the capital gains rate because the IRS recognizes these plans as thinly veiled attempts to reduce stockholder tax liabilities.
• C)About 30% of announced stock repurchase plans are fully completed.
• D)About 35% of announced stock repurchase plans are never started.

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Definitions:

Peripheral Artery Disease

A common circulatory problem in which narrowed arteries reduce blood flow to the limbs, causing pain and fatigue, mostly in the legs.

Heart Attack

A medical emergency where the blood flow to the heart is suddenly blocked, leading to damage of the heart muscle.

Stroke

A health issue wherein the flow of blood to a segment of the brain is either halted or diminished, causing the brain tissue to be deprived of oxygen and essential nutrients.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, often related to atherosclerosis or buildup of plaque in the arteries.