Which of the Following Is True of the Impact of Tax

Which of the following is true of the impact of tax on dividends?

A) The immediate tax liability is considerably higher with dividend payments than share repurchases.
B) When the dividends are paid,the share prices will drop by the amount of tax on dividend.
C) Double taxation on dividends makes equity a more favourable financing options for firms.
D) Low dividend taxes cause corporations to rely too much on equity rather than debt financing.