The Cost of Issuing Preferred Stock by a Corporation Must

question 24

True/False

The cost of issuing preferred stock by a corporation must be adjusted to an after-tax figure because of the 70 percent dividend exclusion provision for corporations holding other corporations' preferred stock.

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Definitions:

Milliliters

A unit of volume in the metric system, equal to one thousandth of a liter or about 0.0338 fluid ounces.

Liter

A metric unit of volume equal to 1,000 milliliters or about 0.264 gallons.

Kilograms

A unit of mass in the metric system equal to 1,000 grams.

Grams

A mass measurement unit representing 0.001 of a kilogram.