When compared with cash dividends, share repurchases provide advantages to shareholders in that:

A.

if the repurchase results in a stock price increase, shareholders who do not sell can defer the tax on that increase indefinitely (until the gain is realized by selling the shares).

B.

All of these are advantages of share repurchases.

C.

only those shareholders who choose to sell are subject to current taxes and transaction costs.

D.

shareholders choosing to sell will only pay taxes on capital gains proceeds, which are taxed at a lower rate than dividends.

E.

None of these are advantages of share repurchases.