Question 5 3 pts Consider the following factors that might encourage firms to use stock repurchases to payout funds. Which reasons are plausible? (i) A stock repurchases means that the payout is taxes as a capital gain instead of ordinary income. (ii) Managers should undertake repurchases if they feel their shares are undervalued. (iii) Shareholders do not demand that managers maintain a consistent repurchase policy year-after-year. All three are true. Only (i) and (ii) are true. Only (ii) and (iii) are true. Only (i) and (iil) are true. Only (i) is true.