B选项是什么意思

问题如下：

John Ladan is an analyst in the research department of an international securities firm. Ladan is currently analyzing Yeta Products, a publicly traded global consumer goods company located in the United States. Selected data for Yeta are presented in Exhibit 1.

Yeta currently does not pay a dividend, and the company operates with a target capital structure of 40% debt and 60% equity. However, on a recent conference call, Yeta’s management indicated that they are considering four payout proposals:

Proposal #1: Issue a 10% stock dividend.

Proposal #2: Repurchase US$40 million in shares using surplus cash.

Proposal #3: Repurchase US$40 million in shares by borrowing US$40 million at an after-tax cost of borrowing of 8.50%.

Proposal #4: Initiate a regular cash dividend.

The implementation of Proposal #1 would generally lead to shareholders

选项：

having to pay tax on the dividend received

experiencing a decrease in the total cost basis of their shares

having the same proportionate ownership as before implementation

解释：

C is correct. The implementation of Proposal #1, a stock dividend, would not affect a shareholder’s proportionate ownership because all shareholders would receive the same proportionate increase in shares. Stock dividends, which are generally not taxable to shareholders, do not impact an investor’s total cost basis (they merely reduce the cost basis per share).

A is incorrect because stock dividends are generally not taxable to shareholders. A stock dividend merely divides the “pie” (the market value of shareholders’ equity) into smaller pieces.

B is incorrect because an investor’s total cost basis will not be affected by a stock dividend; a stock dividend merely reduces the cost basis per share.