Use the Following Information to Answer the Following Question(s)

Use the following information to answer the following question(s) .
Your firm is planning to pay a 15% share dividend.The market price for the share has been $84.The table below presents the equity portion of your firm's balance sheet before the dividend.
Common share

-Five years ago, Ms.Lopez purchased 1000 shares of JPM stock at $50 per share.The market price of the share is now $55.If Ms.Lopez' tax rate is 25%, would she prefer that the company pay a $5.00 per share dividend or offer to repurchase 100 shares at the market price? Assume that after the ex-dividend date, the price would return to $50 per share, but a share repurchase would not affect the market price.

A) Pay the dividend, because she would have no transaction costs.
B) As long as the tax rate on capital gains and dividends is the same, Lopez' wealth is the same under either alternative.
C) Repurchase the share, because she would owe less taxes.
D) She would be better off to sell the share in the open market.