From tax-paying shareholder point of view

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Reference no: EM131569563

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

is equivalent to a stock split.

is more desirable than a cash dividend.

is more highly taxed than a cash dividend.

has the same tax effects as a cash dividend.

creates a tax liability even if the investor does not participate in the repurchase.

Reference no: EM131569563

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