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    Business
  3. Study Set
    Fundamentals of Financial Management
  4. Exam
    Exam 20: Hybrid Financing: Preferred Stock, leasing, warrants, and Convertibles
  5. Question
    Corporations That Invest Surplus Funds in Floating-Rate Preferred Stock Benefit
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Corporations That Invest Surplus Funds in Floating-Rate Preferred Stock Benefit

Question 21

Question 21

True/False

Corporations that invest surplus funds in floating-rate preferred stock benefit from getting a relatively stable price,and they also benefit from the 70% tax exemption on preferred dividends received.

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