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Now assume that Tc= corporate tax rate =40%, Td= Personal rate on debt income= 28%, and Ts = Personal tax rate on stock income= 20%.

Now assume that Tc= corporate tax rate =40%, Td= Personal rate on debt income= 28%, and Ts = Personal tax rate on stock income= 20%. What is the gain from leverage according to the Miller model? How does this compare with the MM gain from leverage, where only corporate taxes are considered?

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