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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: The Reaper who wrote (4544)12/24/1999 3:10:00 AM
From: Labrador  Read Replies (1) | Respond to of 13582
 
Dividends received from another corporation to a corporate holder are subject to a 70% dividend-received deduction -- so only 30% are subject to tax.

But with an investment in another company's stock (even preferred stock), one takes market risk.

I would suspect that the company would park the cash in commercial paper, earning less than 6% until they decided what to do with it -- or pay down debt -- or a combination.


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