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Regarding the tax treatment of payments to securities holders, it is true that ________.

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Regarding the tax treatment of payments to securities holders, it is true that ________.

Regarding the tax treatment of payments to securities holders, it is true that ________.
A) interest and preferred stock dividends are not tax-deductible ,while common stock dividends are tax deductible
B) interest and preferred stock dividends are tax-deductible, while common stock dividends are not tax-deductible
C) common stock dividends and preferred stock dividends are tax-deductible, while interest is not tax-deductible
D) common stock dividends and preferred stock dividends are not tax-deductible, while interest is tax-deductible

Textbook

Principles of Managerial Finance

Edition: 14^th

Authors: Gitman, Zutter

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