What is the current U.S. tax policy with regard to the taxation of dividend income and capital

Question:

What is the current U.S. tax policy with regard to the taxation of income and capital gains income resulting from a share repurchase? If the individual stockholder could choose whether to receive a cash or to have the firm engage in a share repurchase, which should he or she prefer? Explain.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...