Since 70% of the Preferred Dividends Received by a Corporation

question 4

True/False

Since 70% of the preferred dividends received by a corporation are excluded from taxable income,the component cost of equity for a company that pays half of its earnings out as common dividends and half as preferred dividends should,theoretically,be
Cost of equity = r_s(0.30) (0.50)+ r_ps(1 - T) (0.70) (0.50).

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Definitions:

Actus Reus

The physical act of committing a crime, as opposed to the mental intent to commit the crime.

Responsible Corporate Officer Doctrine

A common law doctrine under which the court may impose criminal liability on a corporate officer for actions of employees under her or his supervision regardless of whether she or he participated in, directed, or even knew about those actions.

Criminal Vicarious Liability Doctrine

A legal principle holding one person or entity responsible for the criminal actions of another, typically in an employer-employee relationship.

Corporate Criminal Doctrine

A legal theory that attributes criminal liability to corporations and their executives for acts that are illegal under the law, acknowledging that entities can be responsible for criminal behavior.