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. The marginal tax rate of ABC Corp is specified as below: Taxable IncomeTax rate$ 0 - $ 5 1 0 % $ 5 -
The marginal tax rate of ABC Corp is specified as below: Taxable IncomeTax rate$ $$ $$A firm has its taxable income as the following:Probability Pretax income $m $m Assume the company could purchase a zeroloading insurance policy. What is the premium of the insurance policy? Continue to assume the policy to have a zero loading. How much tax saving will ABC Corp have by purchasing the insurance policy? Answer and assuming the insurance policy has a loading.
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