Suppose that Apple announced it would distribute $100 billion to shareholders in the form of cash dividends or stock repurchases. A tax-conscious investor in a high tax bracket would likely:

a. prefer a high dividend payout, because taxes on dividends can be deferred until the stock is sold.

b. prefer stock repurchases, because of the choice to sell shares back or not; plus, the tax rate on capital gains is capped and the tax is deferred until the stock is sold, which allows for tax-free compounding of returns until sold.

c. prefer a high dividend payout, since dividends received are not taxable to individual investors.

d. be indifferent with regard to whether Apple issues dividends or repurchases its stock.

e. None of the above.