Which of the following statements is TRUE? Question 22 options:

a. Stock buybacks typically result in less financial leverage.

b. Shareholders who sell their stock for more than they paid for it will be subject to capital gains taxes if a company buys back some of its stock on the open market.

c. Adopting the residual dividend policy has the benefit of making it simpler for businesses to satisfy the conditions of Modigliani and Miller's dividend clientele theory.

d. Companies that require new equity and would otherwise have to issue additional shares of common stock through investment bankers will find an open-market dividend reinvestment plan to be the most alluring.