Suppose Congress was to reduce the top corporate tax rate, tc, to 30% from 35%. How would

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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
Suppose Congress was to reduce the top corporate tax rate,
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Taxes And Business Strategy A Planning Approach

ISBN: 9780132752671

5th Edition

Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon

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