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ABC Co.s marginal tax rate is 35%. It receives $3,000 interest income by investing in DEF Co.s bonds, and $3,000 dividends by investing in XYZ
ABC Co.s marginal tax rate is 35%. It receives $3,000 interest income by investing in DEF Co.s bonds,
and $3,000 dividends by investing in XYZ Co.s equity. It also pays $3,000 interest to its creditors, and $3,000 dividends to its shareholders.ABCs after-tax interest income is ____; its after-taxdividend income is ____; its after-tax interest expense is ____; its after-tax dividend payment is____
d.$1,950; $2,685; $1,950; $3,000
Please Show Calculations! Thank you (d.is the correct asnwer)
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