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Business, 14.05.2021 16:10 vane8229

Palo Alto Enterprises has $100,000 in cash. They wish to invest the money in Treasury bills at 6% and use the returns to pay dividends to shareholders after a year. Alternatively they can pay a dividend and allow shareholders to make the investment. If corporate tax rates are 35%, which option will shareholders prefer

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Palo Alto Enterprises has $100,000 in cash. They wish to invest the money in Treasury bills at 6% an...
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