Given a text T, and several options, according to the question posed in the text T to choose the most appropriate option from the options as the answer, please directly output the most appropriate option, do not need to output the explanation.

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.
| Exhibit l.Selected Financial Data for Yet a Products |
| Most Recent Fiscal Year | Current |
| Pretax income | S280mllon | Shares outstanding | 100mlion |
| Net income after tax | $182mlion | Book value per share | $25.60 |
| Cashflow from operations | S235milion | Share price | S20.00 |
| Capital expenditures | $175mlion |  |  |
| Eam ings per share | S1.82 |  |  |


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 $40 million in shares using idle cash.Proposal #3: Repurchase $40 million in shares by borrowing $40 million at an after-tax cost of borrowing of 8.50%.Proposal #4: Initiate a regular cash dividend based on a residual dividend policy.
The implementation of Proposal #1 would generally lead to shareholders:
Option A:having to pay tax on the dividend received.
Option B:experiencing a decrease in the total cost basis of their shares.
Option C:having the same proportionate ownership as before implementation.

Answer: C