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Assume that Will's marginal tax rate is 25 percent and his tax rate on dividends is 15 percent. If a dividend paying stock (with no

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Assume that Will's marginal tax rate is 25 percent and his tax rate on dividends is 15 percent. If a dividend paying stock (with no growth potential) pays a dividend yield of 8.8 percent. what interest rate must the corporate bond offer for Will to be indifferent between the two investments from a cash-flow perspective? Multiple Choice 12.17 percent O 11.27 percem 9.97 percent 7.37 percent None of the choices are correct

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