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2. (LO 19.2) Collingwood Corp. has decided to invest some of its excess cash in straight preferred shares issued by other companies. It will earn

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2. (LO 19.2) Collingwood Corp. has decided to invest some of its excess cash in straight preferred shares issued by other companies. It will earn a yield of 4.5 percent on the $ 10-million investment. How much net income will Collingwood earn if its corporate tax rate is 25 percent? 27

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