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Assume that Juanita is indifferent between investing in a corporate bond that pays 11.60 percent interest and a stock with no growth potential that pays
Assume that Juanita is indifferent between investing in a corporate bond that pays 11.60 percent interest and a stock with no growth potential that pays a 7.90 percent dividend yield. Assume that the tax rate on dividends is 15 percent. What is Juanita's marginal tax rate?(Do not round intermediate computations.)
21.73 percent | ||
42.11 percent | ||
None of the choices are correct. | ||
10.87 percent | ||
31.92 percent |
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