Suppose the tax rate on interest income is 40%, and the average tax rate on capital gains
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Suppose the tax rate on interest income is 40%, and the average tax rate on capital gains and dividend income is 15%. How high must the marginal corporate tax rate be to offer a tax advantage?
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To determine the marginal corporate tax rate that offers a tax advantage we need to compare the effective tax rates on Interest income Subject to a 40 ...View the full answer
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Related Book For
Corporate Finance The Core
ISBN: 9781292158334
4th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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