Which of the following statements regarding the tax impacts on payout policy is MOST true?

A. Share repurchases are generally tax advantaged relative to dividends due to the fact that short-term capital gains are generally taxed at a lower rate than ordinary income.

B. Share repurchases are generally tax disadvantaged relative to dividends due to the fact that short-term capital gains are generally taxed at a lower rate than ordinary income.

C. Share repurchases are generally tax advantaged relative to dividends due to the fact that short-term capital gains are generally taxed at a higher rate than ordinary income.

D. Share repurchases are generally tax disadvantaged relative to dividends due to the fact that short-term capital gains are generally taxed at a higher rate than ordinary income.

E. There are no distinctions between share repurchases and dividends with regards to tax.