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6 Assume that Lucas's marginal tax rate is 32 percent and his tax rate on dividends is 16 percent. If a dividend paying stock (with

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6 Assume that Lucas's marginal tax rate is 32 percent and his tax rate on dividends is 16 percent. If a dividend paying stock (with no growth potential) pays an 6 percent dividend yield, what interest rate would a municipal bond have to offer for Lucas to be indifferent between the two investments from a cash-flow perspective? 8 07:4:45 Multiple Choice Book 32.00 percent 1500 percent 6.00 percent

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