70 percent dividend income exclusion on the tax returns of corporations. That is, if a corporation owns preferred stock, it can exclude 70 percent of dividend income and pay income taxes on only 30 percent of dividend income, both preferred and common stock.

A corporation with a marginal tax rate of 34 percent would receive what after-tax dividend yield on a 12 percent coupon rate preferred stock bought at par assuming a 70 percent dividend exclusion?

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

The dividend is 97.

The dividend is 97.

The dividend is 97.

The dividend is 97.

THe answer is dividend.

THe answer is dividend.