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  3. Study Set
    CFIN4
  4. Exam
    Exam 12: Capital Structure
  5. Question
    Tax Adjustments to the Cost of Preferred Stock Must Be
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Tax Adjustments to the Cost of Preferred Stock Must Be

Question 73

Question 73

True/False

Tax adjustments to the cost of preferred stock must be made when determining the cost of capital since dividend expenses on preferred stocks are tax deductible.

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