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The answer is C. Why? 7. Consider the following tax rates: Corporate tax rate of 35%, Interest tax rate of 40% and Dividend tax rate
The answer is C. Why?
7. Consider the following tax rates: Corporate tax rate of 35%, Interest tax rate of 40% and Dividend tax rate of 20%. What must be the value of the Capital Gains tax rate for the company to be indifferent between using its cash to pay its investors or retaining the cash? A) 26.1% B) 35% C) 7.7% D) 0%Step by Step Solution
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
