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Aholding company sells shares in its subsidiary which lowers its ownership to only 38%, thus, the tax returns of the parent and its subsidiary can
Aholding company sells shares in its subsidiary which lowers its ownership to only 38%, thus, the tax returns of the parent and its subsidiary can no longer be consolidated. If the parent company's marginal tax rate is 40% and if the exclusion on inter-company dividends is 70%, what is the effective tax rate on the inter-company dividends?
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