Stock repurchases

A) reduce the number of shares and as a result increase the price of stock.

B) that create capital gains have a tax advantage.

C) occur irregularly.

D) All of the above are correct.

Asymmetric information as it relates to dividend policy

A) doesn't exist. The dividend policy of a firm is always known.

B) implies that the firm should never pay a dividend as reinvesting earnings is the best way to ensure long run growth.

C) implies that the firm needs to 'show stockholders the money' at some point.

D) All of the above are true.

Regular normal dividends are

A) taxed at the same rate as capital gains

B) taxed at a lower rate than capital gains

C) a dividend paid only when assets are sold

D) a dividend that the firm expects to continue paying in all future periods

Transaction costs, as they relate to dividend policy,

A) include the costs of brokerage fees.

B) include information costs related to assessing the value of a firm.

C) are mitigated by the firm 'showing the investor the money'.

D) All of the above are true.