Question 13 states:

If both long-term capital gains tax rates and dividend tax rates are 23.8% for an investor, that investor will most likely:

Prefer that his stocks pay dividends

Prefer that his stocks conduct share repurchase programs

Be indifferent as to whether he receives dividends or has his shares bought back by the issuing firm

--------------------

Assume now the facts are the same as in 13., except now long-term capital gains tax rates are 35%. This investor will now:

a. Prefer that his stocks pay dividends

b. Prefer that his stocks conduct share repurchase programs

c. Be indifferent as to whether he receives dividends or has his shares bought back by the issuing firm