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Dennis is currently considering investing in municipal bonds that earn 8.55 percent interest, or in taxable bonds issued by the Coca-cola Company that pay 11.40
Dennis is currently considering investing in municipal bonds that earn 8.55 percent interest, or in taxable bonds issued by the Coca-cola Company that pay 11.40 percent. a. If Dennis's tax rate is 22 percent, which bond should he choose? Municipal bonds O Taxable bonds b. Which bond should he choose if his tax rate is 32 percent? O Municipal bonds O Taxable bonds c. At what tax rate would he be indifferent between the bonds? x Answer is complete but not entirely correct. Tax rate 10 x %d. What strategy is this decision based upon? O Development planning strategy O Business planning strategy O Decision planning strategy O Marketing planning strategy O Conversion planning strategy O Timing strategy O Income shifting strategy
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