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Assume that investors in Google pay a 1 5 % tax rate on income from equity and a 3 5 % tax rate on interest

Assume that investors in Google pay a

15 %

tax rate on income from equity and a

35 %

tax rate on interest income. If Google were to issue sufficient debt to reduce its taxes by $

1

billion per year permanently and the corporate tax rate is

35 %,

then the Miller's

G

of this debt would be closest to:

Select one:

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