Consider the following statements:

Statement 1: If the stock price is lower than the book value per share, a companys book value per share will increase after a share repurchase.

Statement 2: There is a tax advantage to distributing cash through repurchases in markets where capital gains are taxed at a higher rate than dividends.

Which of the following is most likely?

	Only Statement 1 is correct.
	Both statements are correct.
	Only Statement 2 is correct.