A company has positive free cash flow and is considering whether to use the entire amount of that free cash flow to pay a special cash dividend or to repurchase shares at the prevailing market price. shareholders wealth under the two options will be equivalent unless the:
A. company’s book value per share is less than the prevailing market price.
B. company’s book value per share is greater than the prevailing market price.
C. tax consequences and/or information content for each alternative is different.