Question
Problem 3: Determine the marginal contribution of debt for the following combinations of personal tax rates on interest income (T B ), distributions to equity
Problem 3:
Determine the marginal contribution of debt for the following combinations of personal tax rates on interest income (TB), distributions to equity holders (TS), and the corporate tax rate (TC).
TCTSTBMarginal Contribution
.20.20.20____
.20.35.20____
.20.20.35____
.20.35.35____
.35.20.20____
.35.35.20____
.35.20.35____
.35.35.35____
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
14th edition
133879879, 978-0133879872
