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The personal tax on interest payments is 33%. The personal tax rate on equity capital gain is 15%. The corporate tax is 35%. Given all

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The personal tax on interest payments is 33%. The personal tax rate on equity capital gain is 15%. The corporate tax is 35%. Given all these tax rates and all other factors are kept constant, will investors have a preference to debt or equity? Del is preferred to equity. OMM Proposition 1 holds and the investors are indifferent between debt and equity. Eaty i preferred to debe O Cannot determine from the information provided

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