Consider the following tax rates:

Year	Corporate Tax Rate	Capital Gains Rate	Ordinary Income Rate	Dividend Rate
19972000	35%	20%	40%	40%
20012002	35%	20%	39%	39%
2003	35%	15%	35%	15%

The effective tax disadvantage for retaining cash in 2006 is closest to:

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Part 1

A.

15.00%

B.

14.75%

C.

35.00%

D.

12.50%