Question: REQUIRED: If (1 - Tc) X (1 - TE) = 1 - TD and the personal tax rate on dividends received is 20%, what is

REQUIRED:

If (1 - Tc) X (1 - TE) = 1 - TD and the personal tax rate on dividends received is 20%, what is the personal tax rate on interest payments received that should make the management of Bean and Butler indifferent between equity and debt financing?

Group of answer choices

20%

25%

40%

60%

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