Suppose you work for Oracle Corporation, and part of your compensation takes the form of stock options. The value of the stock option is equal to the difference between Oracle's stock price and an exercise price of $10 per share at the time that you exercise the option. As an option holder, would you prefer that Oracle use dividends or share repurchases to pay out cash to shareholders? Explain
a) Dividends, as they provide immediate cash benefits
b) Share repurchases, as they can increase the stock price over time
c) Dividends, as they are more transparent to shareholders
d) Share repurchases, as they can help reduce dilution for existing shareholders
