The Dividend Exemption for Canadian Corporations Receiving Dividends from Another

Multiple Choice

The dividend exemption for Canadian corporations receiving dividends from another Canadiancorporation has resulted in

A) a lower cost of equity for the corporation paying the dividend.
B) stock investments being relatively more attractive relative to bond investments made by one corporation in another corporation.
C) a higher relative cost of bond-financing for the corporation paying the dividend.
D) stock investments being relatively less attractive, relative to bond investments made by one corporation in another corporation.