Share repurchases are often more tax$-$efficient than declaring dividends because

Question $8$ options:

a$)$

companies can reduce their taxable income by reducing the number of shares outstanding

b$)$

only shareholders who sell their stock are taxed on any resulting capital gain

c$)$

the ordinary income tax rate on buybacks is often lower than the long$-$term capital gains tax rate on dividends

d$)$

B and C are correct

e$)$

None of the options are correct