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What is the likely impact on a new individual investor who bought prior to the ex-dividend date if a firm undertakes a stock repurchase in
What is the likely impact on a new individual investor who bought prior to the ex-dividend date if a firm undertakes a stock repurchase in lieu of a cash dividend?
a. | Lower share price | |
b. | A tax-free transaction | |
c. | Higher income taxes, if capital gains tax rates are less than dividend tax rates | |
d. | Lower income taxes, if capital gains tax rates are less than dividend tax rates |
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