Suppose Congress was to reduce the top corporate tax rate
Suppose Congress was to reduce the top corporate tax rate, tc, to 30% from 35%. How would this affect the required pretax corporate return, R*c, calculated in the final line of Table 4.4? That is, recalculate the required pretax corporate return for the holding periods and other parameter values as listed for the 2003 line in Table 4.4.
Table 4.4
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