Companies reporting losses to the IRS may issue preferred stock. Because they have no taxable income from

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Companies reporting losses to the IRS may issue preferred stock. Because they have no taxable income from which interest on debt can be deducted, preferred stock imposes no tax penalty relative to debt. In other words, (1) does not apply. LO.1

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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