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mote1985 [20]
3 years ago
7

Since 70 percent of preferred dividends received by a corporation is excluded from taxable income, the component cost of equity

for a company which pays half of its earnings out as common dividends and half as preferred dividends should, theoretically, be
Cost of equity = rs(0.30)(0.50) + rps(1 - T)(0.70)(0.50).
a.True
b.False
Business
1 answer:
dusya [7]3 years ago
3 0

Answer:

The answer is False

Explanation:

Since the 70 percent of preferred dividends received by a company is excluded from taxable income, the component cost of equity for a corporation which pays half of its revenue out as a common dividends and half as preferred dividends should ,technically be.

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<em>Need for Achievement.</em>

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