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The reason for this is that dividends are 70% excluded from corporate income taxes. So to an insurance company, bank, or any other company, preferred stock, which pays dividends and not interest, is priced much like a municipal bond would be to an individual.

I don't understand the point you're trying to make here. To whom are dividends exluded from corporate income taxes by 70%? Are preferred dividends somehow accounted for differently than regular dividends?

Can somebody help me out here?

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