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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%
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:
Question content area bottom
Part 1
A.
15.00%
B.
14.75%
C.
35.00%
D.
12.50%
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