Which of the following choices is NOT the reason that a CEO may prefer stock repurchase?

Stock repurchase is relatively flexible, but cash dividends should usually be very stable.

CEO may hold lots of call options on stocks of his/her company. As cash dividends will negatively affect stock price, CEOs personal wealth will also be negatively affected.

If the stock of a firm is currently overvalued, the CEO may prefer to repurchase stocks to maintain the overvaluation.

Current dividend income tax rate is higher than capital gain tax rate. As CEOs usually hold a significant amount of shares of their firms, they prefer stock purchase which incurs less tax expenses.

None of the above choices is correct.