Question: What is the answer for Part B??? a. What is the relative tax advantage of corporate debt if the corporate tax rate is TC=0.24, the

What is the answer for Part B??? a. What is the

What is the answer for Part B???

a. What is the relative tax advantage of corporate debt if the corporate tax rate is TC=0.24, the personal tax rate is TP=0.10, but all equity income is received as capital gains and escapes tax entirely (TpE=0) ? (Do not round intermediate calculations. Round your answer to 4 decimal places.) b. How does the relative tax advantage change if the company decides to pay out all equity income as cash dividends that are taxed 26% ? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

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