Business, 23.04.2021 18:50 rehooreh14
Company A and Company B are identical in all regards except that during Year 1 Company A borrowed $35,000 at an interest rate of 10%. In contrast, Company B obtained financing by acquiring $35,000 from sale of common stock. Company B agreed to pay a $3,500 cash dividend each year. Both companies are in a 30% tax bracket. Which company would show the greater retained earnings at the end of Year 1, and by what amount
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Company A and Company B are identical in all regards except that during Year 1 Company A borrowed $3...
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