• creates a tax liability even if the investor does not participate in the repurchase.

• avoids all taxation.

• is equivalent to a stock split.

• is more highly taxed than a cash dividend.

• is more desirable than a cash dividend.

Which one is correct?

Suppose that you are an individual in the highest tax bracket. From your perspective, a stock repurchase Multiple Choice creates a tax liability even if the investor does not participate in the repurchase. avoids all taxation. O is equivalent to a stock split. is more highly taxed than a cash dividend. Suppose that you are an individual in the highest tax bracket. From your perspective, a stock repurchase Multiple Choice creates a tax liability even if the investor does not participate in the repurchase. avoids all taxation. O is equivalent to a stock split. is more highly taxed than a cash dividend