1.Critical thinking Question: Justify why the marginal income tax rate for the company does not need to be considered when calculating the after-tax cost of equity (common or preferred).

1.Critical thinking Question: Justify why the marginal income tax rate for the company does not need to be considered when calculating the after-tax cost of equity (common or preferred).

2. If you were a manager of a company, discuss the variables you would take into account when determining the dividend payments to your employees.

*Note: Reference is mandatory (not less than 10)
1 mark will be reduced if references are not provided.

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