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Assume the following: Corporate tax is 21 percent; Personal tax rate on equity income is 15 percent; Personal tax rate on interest income is 37

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Assume the following: Corporate tax is 21 percent; Personal tax rate on equity income is 15 percent; Personal tax rate on interest income is 37 percent. What is the relative tax advantage of $1 debt? O a. 0.94 o b. 1.16 O c. 1.35 O d. 0.86 ER O e. None of the above

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