Question
Consider a world of corporate taxes along with personal taxes on income from shares and on income from bonds. (i) Prove that the gain from
Consider a world of corporate taxes along with personal taxes on income from shares and on income from bonds.
(i) Prove that the gain from leverage is less than the gain without personal taxes.
(ii) With appropriate tax rates, is it possible that the gain could be negative? If so, provide a numerical example.
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Finance For Non Financial Managers
Authors: Pierre Bergeron
6th Edition
0176501630, 9780176501631
