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What Is the After-Tax Cost to a Corporation in the 35

Question 53

Multiple Choice

What is the after-tax cost to a corporation in the 35 % tax bracket of paying $50,000 in preferred-stock dividends?


A) $17,500
B) $32,500
C) $50,000
D) $76,923 After-tax cost of preferred stock dividends:
= before-tax cost
= $50,000

Correct Answer:

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