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Griffey Communications recently realized $80,000 in operating income. The company had interest income of $30,000 and realized $70,000 in dividend income. The companys interest expense
Griffey Communications recently realized $80,000 in operating income. The company had interest income of $30,000 and realized $70,000 in dividend income. The companys interest expense was $40,000. Its corporate tax rate is 25%. Griffey is a small company, so it is not subject to the interest expense deduction limitation. Assume a 50% dividend exclusion for taxes on dividends.
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