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The top personal tax rate on both interest income and dividend income is 35%. The tax rate on realized capital gains is 15%. The corporate

The top personal tax rate on both interest income and dividend income is 35%. The tax rate on realized capital gains is 15%. The corporate tax rate is 35%. a) Compute the total corporate plus personal taxes paid on $1 of debt income. b) Compute the total corporate plus personal taxes paid on $1 of equity income if all capital gains are realized immediately. Capital gains represent 25% of equity income.

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