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a. What is the relative tax advantage of corporate debt if the corporate tax rate is re 0.22, the personal tax rate on interest
a. What is the relative tax advantage of corporate debt if the corporate tax rate is re 0.22, the personal tax rate on interest is Tpp 0.24, but all equity income is received as capital gains and escapes tax entirely (pg 0)2 b. How does the relative tax advantage change if the company decides to pay out all equity income as cash dividends that are taxed at 18% ? Note: Do not round intermediate calculations. Round your answers to 4 decimal places. a. Relative tax advantage b. Relative tax advantage
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