Solution-Which option will result in greater after tax

Which option will result in greater after tax income

Reference no: EM131110538

Reston, Inc., has asked your corporation, Pruro, Inc., for financial assistance. As a long-time customer of Reston, your firm has decided to give that assistance. The question you are debating is whether Pruro should take Reston stock with a 5% annual dividend or a promissory note paying 5% annual interest. Assuming payment is guaranteed and the dollar amounts for annual interest and dividend income are identical, which option will result in greater after-tax income for the first year?

Reference no: EM131110538

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Which option will result in greater after tax income

Reference no: EM131110538

Reference no: EM131110538

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