Assume a corporation has a 70% dividend received deduction for stock dividends. Only 30% of the dividend

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Assume a corporation has a 70% dividend received deduction for stock dividends. Only 30% of the dividend is subject to the 0.35 corporate tax.

Assume a preferred stock has a dividend yield (before tax) of 0.10. A bond yields 0.09.

Which security promises the higher after-tax return?

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Bare Essentials Of Investing The Teaching The Horse To Talk

ISBN: 9789812705402

1st Edition

Authors: Harold Bierman

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Question Posted: Jun 06, 2024 01:10 AM

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Assume a corporation has a 70% dividend received deduction for stock dividends. Only 30% of the dividend

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Bare Essentials Of Investing The Teaching The Horse To Talk

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