In Canada, investors would prefer a stock repurchase to a cash dividend since

Question

Quizplus · Accepted Answer

All of the above reasons are valid for why investors in Canada may prefer a stock repurchase over a cash dividend. Stock repurchases give investors the option to sell their securities or keep them, while cash dividends provide only taxable income. Additionally, capital gains are taxed at a more favorable rate than dividend income in Canada, giving investors another reason to prefer stock repurchases.

In Canada, Investors Would Prefer a Stock Repurchase to a Cash