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Assume that Jose is indifferent between investing in a corporate bond that pays 10% interest and a stock with no growth potential that pays an
Assume that Jose is indifferent between investing in a corporate bond that pays 10% interest and a stock with no growth potential that pays an 8% dividend yield. Assume that the tax rate on dividends is 15%. What is Jose's marginal tax rate?
47%.
37%.
32%.
15%.
None of these.
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