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Suppose you are a stock broker for RBC Financial. Your client bought a share of preferred stock of Nitel af $70, A year later, your

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Suppose you are a stock broker for RBC Financial. Your client bought a share of preferred stock of Nitel af $70, A year later, your client received a $7 dividend and sold the stock at $77 per share The coupon rate on a tax- exempt bond is 12% and sells at par. If your client is a corporation and as we discussed in the class that a corporation may exclude 70% of dividends received rorn domestic corporations in the computation of their taxable income). At what tax bracket (marginal tax rate) would your client have the same after tax return from the tax- exempt bond and the investment from the stock

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