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Market Imperfections May Make the Choice Between Dividends and Repurchases

Question 66

Multiple Choice

Market imperfections may make the choice between dividends and repurchases relevant.Which of the following is not one of these imperfections?


A) Institutional restrictions on stock holdings
B) Differences in dividend-payout ratios
C) Taxes on dividends and capital gains
D) Differences among investors in marginal tax rates

Correct Answer:

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