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Assume that Shavonne's marginal tax rate is 37 percent and her tax rate on dividends is 25 percent. If a corporate bond pays 9.6 percent
Assume that Shavonne's marginal tax rate is 37 percent and her tax rate on dividends is 25 percent. If a corporate bond pays 9.6 percent interest, what dividend yield would a dividend paying stock (with no growth potential) have to offer for Shavonne to be indifferent between the two investments from a cash-flow perspective? Multiple Choice 6.94 percent 8.07 percent 9.60 percent 25.00 percent None of the choices are correct
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