1 and 2

es 1. Corporate Tax Brackets for EBT of: 15% 0 to $50K $50K to $75K $75K to $100K $100 to $335K $7,500 + 25% of the excess over the lower end of the tax bracket $13,750 + 34% of the excess over the lower end of the tax bracket $22,250 + 39% of the excess over the lower end of the tax bracket $113,900 + 34% of the excess over the lower end of the tax bracket $3.4 Million + 35% of the excess over the lower end of the tax TO $335K to $10 Mill $10 Mill to $15 Mill bracket If EBIT is $9 Million, debt is $12 million, interest rate on debt is 6%, interest income is $300K, and dividends paid of $1 million. What is EBT, Net income, and additions to retained earnings? What is the marginal tax rate and what is the average tax rate? 2. If a corporate bond pays an interest rate of 5.6% and a municipal bond pays an interest rate of 4.3%, at what tax rate will these 2 bonds have an equivalent after tax return? If the tax rate is higher than your computed tax rate, which bond should the investor buy