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.
Answer: B
Explanation: B) Stock repurchases are effectively the payment of cash dividends and are thus taxed in a similar manner.
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A gas station was built in 1938. The area surrounding it was zoned residential in 1960. The gas station is an example of:
a. a non-conforming use b. planned unit development c. down zoning d. gentrification
Which of the following is an incomplete sentence?
A) Social media sites such as Facebook and Twitter have become popular marketing tools for businesses. B) Because technology has enabled businesses to reach new customers. C) Many businesses are still reluctant to use social media sites to market their products or services.