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Please with full steps and explanation What is the relative tax advantage of debt? Assume that personal and corporate taxes are given by Tc =

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Please with full steps and explanation

What is the relative tax advantage of debt? Assume that personal and corporate taxes are given by Tc = (corporate tax rate) = 35 percent; Tpe = personal tax rate on equity income = 30 percent; and Tp = personal tax rate on interest income = 20 percent. (4 points)

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