Assuming No Change in the Payout Structure, What Measure Would

question 27

Multiple Choice

Assuming no change in the payout structure, what measure would reduce corporate financing costs

• A) allowing dividends to be deducted from income prior to assessing tax.
• B) a reduction in the tax rate.
• C) limiting the amount of interest that can be deducted from income prior to assessing tax.
• D) both a and b

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