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Which of the following statements regarding current U.S. tax laws is true? o Only dividend payments on preferred stock and interest payments on debt are

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Which of the following statements regarding current U.S. tax laws is true? o Only dividend payments on preferred stock and interest payments on debt are tax-deductible for a firm O Only dividend payments are tax deductible; interest is never tax deductible Only interest payments are tax deductible; dividends are paid out of after-tax income O Both dividend payments and interest payments are tax-deductible for a firm

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