In aggregate, the corporate sector will issue just enough debt so that individuals with tax brackets equal

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In aggregate, the corporate sector will issue just enough debt so that individuals with tax brackets equal to and below the corporate tax rate, tC, will hold debt, and individuals with higher tax brackets will not hold debt. Thus, individuals in these higher brackets will hold stock. LO.1

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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