100% accuracy, please!

Which of the following statements is wrong? Share repurchase was prohibited by the SEC in the 80 's. In a perfect capital market, investors are indifferent between share repurchase and dividend payment. Historically, dividends were taxed at a higher rate than capital gain, because investors can use "homemade dividend." If a shareholder use the just-paid dividend to purchase the stock of the firm, this investor does not need to pay tax for the dividend