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Assume Julie, an XYZ employee, has the option of participating in XYZ s deferred compensation plan. Julie s marginal tax rate is 3 7 percent,
Assume Julie, an XYZ employee, has the option of participating in XYZs deferred compensation plan. Julies marginal tax rate is percent, and she expects the rate to remain constant over the next five years. Julie is trying to decide how muchdeferred compensation she will need to receive from XYZ in five years to make her indifferent between receiving the current salary of $ and receiving the deferred compensation payment. If Julie takes the salary, she will invest it in a taxable corporate bond paying interest at percent annually after taxes What amount of deferred compensation would accomplish this objective?
Assume Julie, an XYZ employee, has the option of participating in XYZs deferred compensation plan. Julies marginal tax rate is percent, and she expects the rate to remain constant over the next five years. Julie is trying to decide how muchdeferred compensation she will need to receive from XYZ in five years to make her indifferent between receiving the current salary of $ and receiving the deferred compensation payment. If Julie takes the salary, she will invest it in a taxable corporate bond paying interest at percent annually after taxes What amount of deferred compensation would accomplish this objective?
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