$2$

Multiple Choice

$1\mathrm{.}667$ points

Which statement is correct?

Many firms either ceased paying or decreased their dividends per share in response to the $2003$ change in dividend taxation.

Firms tend to prefer cash dividends over share repurchases for their flexibility and tax benefits.

Cash dividends and stock repurchases are treated equally for tax purposes.

A non$-$dividend$-$paying firm is more apt to do a stock repurchase than to commence paying dividends.

In total dollars, cash dividends outweighed stock repurchases for the period $2003-2013.$

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