Your co-worker says: Now that the capital gains and dividend tax rates are the same, share repurchases no longer have a tax advantage over dividends. Is your co-workers statement:

True, because capital gains are riskier than dividends.

True, because short-term capital gains are still taxed at a high rate, giving dividends a tax advantage.

False, because investors like capital gains because they are bigger than dividends.

False, because capital gains taxes can be indefinitely postponed.