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In 2006, Luther Incorporated paid a special dividend of $5 per share for the 1 million shares outstanding. If Luther has instead retained that cash
In 2006, Luther Incorporated paid a special dividend of $5 per share for the 1 million shares outstanding. If Luther has instead retained that cash permanently and invested it into Treasury bills earning 6%, then the present value (PV) of the additional taxes paid by Luther would be closest to: \$3.25 million $1.75 million $.35 million $5.85 million $2.90 million
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