Is this right?

Which of the following statements is correct? The stronger management thinks the clientele effect is, the more likely the firm is to adopt a strict version of the residual dividend model. Stock repurchases can be used by a firm that wants to increase its debt ratio. A dollar paid out to repurchase stock is taxed at the same rate as a dollar paid out in dividends. Thus, both companies and investors are indifferent between distributing cash through dividends and stock repurchase programs. If a company uses the residual dividend model to determine its dividend payments, dividends payout will tend to increase whenever its profitable investment opportunities increase