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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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