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

Multiple Choice

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

A) is equivalent to a cash dividend.
B) is more desirable than a cash dividend.
C) has the same tax effects as a cash dividend.
D) is more highly taxed than a cash dividend.
E) creates a tax liability even if the investor does not sell any of the shares he owns.