Question: Consider the following formula: tau* = StartFraction left parenthesis 1 minus tau Subscript i right parenthesis minus left parenthesis 1 minus tau Subscript c right

Consider the following formula: tau* = StartFraction left parenthesis 1 minus tau Subscript i right parenthesis minus left parenthesis 1 minus tau Subscript c right parenthesis left parenthesis 1 minus tau Subscript e right parenthesis Over left parenthesis 1 minus tau Subscript i right parenthesis EndFraction The term tau* is: A. the effective corporate tax rate on income. B. the effective tax advantage of debt. C. the effective personal tax rate on interest income. D. the effective personal tax rate on equity.

Consider the following formula: (1 - i) - (1 - 1) (1 - 1) (1 - i) The term tis: O A. the effective corporate tax rate on income. OB. the effective tax advantage of debt. O c. the effective personal tax rate on interest income. O D. the effective personal tax rate on equity

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