From a Tax-Paying Shareholder's Point of View,a Stock Repurchase

Multiple Choice

From a tax-paying shareholder's point of view,a stock repurchase

A) is equivalent to a stock split.
B) is more desirable than a cash dividend.
C) is more highly taxed than a cash dividend.
D) avoids all taxation.
E) creates a tax liability even if the investor does not participate in the repurchase.