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    Financial Management Theory Study Set 2
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    Exam 9: The Cost of Capital
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    The Cost of Preferred Stock to a Firm Must Be
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The Cost of Preferred Stock to a Firm Must Be

Question 71

Question 71

True/False

The cost of preferred stock to a firm must be adjusted to an after-tax figure because 70% of dividends received by a corporation may be excluded from the receiving corporation's taxable income.

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