2. the dividend exclusion for corporations receiving dividends from another corp

Question

2. the dividend exclusion for corporations receiving dividends from another corporation has resulted in a. stock investments being relatively less attractive, relative to bond investments made by one corporation in another corporation. b. stock investments being relatively more attractive relative to bond investments made by one corporation in another corporation. c. a lower cost of equity for the corporation paying the dividend d. a higher relative cost of bond financing for the corporation paying the dividend

Explanation / Answer

Answer: b. stock investments being relatively more attractive relative to bond investments made by one corporation in another corporation.

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