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    Principles of Corporate Finance Study Set 4
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    Exam 2: Financial Statements, Cash Flows, and Taxes
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    Corporation a Owns 15 Percent of the Stock of Corporation
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Corporation a Owns 15 Percent of the Stock of Corporation

Question 128

Question 128

Multiple Choice

Corporation A owns 15 percent of the stock of corporation B. Corporation B pays corporation A$100,000 in dividends in 2002. Corporation A must pay tax on


A) $50,000.
B) $100,000.
C) nothing.
D) $125,000.

Correct Answer:

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