Assume the corporate tax rate is 30%, the personal tax rate on interest income is 40%, and that a change in capital structure does not
Assume the corporate tax rate is 30%, the personal tax rate on interest income is 40%, and that a change in capital structure does not affect financial risk. What personal tax rate for equity income would make an investor indifferent to a firms capital structure decisions?
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Authors: William Brueggeman, Jeffrey Fisher
17th Edition
1264072945, 978-1264072941
