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Find the after-tax return to a corporation that buys a share of preferred stock at $38, sells it at year-end at $38, and receives a
Find the after-tax return to a corporation that buys a share of preferred stock at $38, sells it at year-end at $38, and receives a $4 year-end dividend. The firm is in the 30% tax bracket. Remember: The corporations may exclude 50% of dividends received from domestic corporations in the computation of their taxable income.
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