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Assume that Will's marginal tax rate is 32 percent and his tax rate on dividends is 15 percent. If a dividend-paying stock (with no growth

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Assume that Will's marginal tax rate is 32 percent and his tax rate on dividends is 15 percent. If a dividend-paying stock (with no growth potential) pays a dividend yield of 5.6 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 O 9.04 percent 8.08 percent O O 7.00 percent 4.88 percent O O O None of the choices are correct

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