4. Financing Trends. True or false? Explain. (LO5) a. In several recent years, nonfinancial corporations in the

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4. Financing Trends. True or false? Explain. (LO5)

a. In several recent years, nonfinancial corporations in the United States have repurchased more stock than they have issued.

b. A corporation pays tax on only 30% of the common or preferred dividends it receives from other corporations.

c. Because of the tax advantage, a large fraction of preferred shares is held by corporations.

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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