The Dividend Exclusion for Corporations Receiving Dividends from Another Corporation

Multiple Choice

The dividend exclusion for corporations receiving dividends from another corporation has resulted in ________.

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