Which of the following is generally NOT TRUE of stock repurchase plans? About 30
ID: 2738821 • Letter: W
Question
Which of the following is generally NOT TRUE of stock repurchase plans?
About 30% of announced stock repurchase plans are fully completed.
About 35% of announced stock repurchase plans are never started.
Stock repurchase plans effectively allow shareholders to choose their own dividend policy.
Stockholders who sell all or part of their shares back to the firm as part of an announced stock repurchase plan pay taxes at an ordinary rate rather than the capital gains rate because the IRS recognizes these plans as thinly veiled attempts to reduce stockholder tax liabilities.
About 30% of announced stock repurchase plans are fully completed.
About 35% of announced stock repurchase plans are never started.
Stock repurchase plans effectively allow shareholders to choose their own dividend policy.
Stockholders who sell all or part of their shares back to the firm as part of an announced stock repurchase plan pay taxes at an ordinary rate rather than the capital gains rate because the IRS recognizes these plans as thinly veiled attempts to reduce stockholder tax liabilities.
Explanation / Answer
The following is generally NOT TRUE of stock repurchase plans :
"Stock repurchase plans effectively allow shareholders to choose their own dividend policy."
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