If Congress were to eliminate the double taxation of dividends so that a company could deduct dividend payments in the same way it does interest payments for tax purposes, what would be the effect on preferred stock and common stock financing ...

The amount of preferred and common stock financing woul ...

If Congress were to eliminate the double taxation of dividends so that a company could deduct dividend

Question:

If Congress were to eliminate the double taxation of dividends so that a company could deduct payments in the same way it does interest payments for tax purposes, what would be the effect on preferred stock and financing?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...