Question
Assume that the firm's gain from leverage according to the Miller model is $126,667. If the effective personal tax rate on stock income is TS
Assume that the firm's gain from leverage according to the Miller model is $126,667. If the effective personal tax rate on stock income is TS = 20%, what is the implied personal tax rate on debt income? If the following is true: EBIT: $100,000rd: 12%Tc: 30% Debt: $500,000rsU: 16%
| 16.4% |
| 18.2% |
| 20.2% |
| 22.5% |
| 25.0% |
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Fundamentals Of Multinational Finance
Authors: Michael Moffett, Arthur Stonehill, David Eiteman
6th Edition
0134472136, 978-0134472133
