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Joan is a tax-paying shareholder. Explain to her that a share dividend: a 1) has the same tax liability as a cash dividend 2) is

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Joan is a tax-paying shareholder. Explain to her that a share dividend: a 1) has the same tax liability as a cash dividend 2) is liable for tax only when the share is sold ) 3) is the same as a cash dividend 4) is better than a cash dividend 5) is a tax liability for the shareholder, as more tax has to be paid on a share repurchase

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