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Use the data in the table, to calculate the tax disadvantage of retained cash in: a. 1998. b. 1976 . a. 1998. The tax disadvantage
Use the data in the table, to calculate the tax disadvantage of retained cash in: a. 1998. b. 1976
. a. 1998. The tax disadvantage of retained cash in 1998 is _____%. (Round to two decimal places.)
b. 1976. The tax disadvantage of retained cash in 1976 is _____%. (Round to two decimal places.)
Year | Corporate Tax Rate | Interest Income | Average Rate on Equity Income | Dividends | Capital Gains |
1971-1978 | 48% | 70% | 53% | 70% | 35% |
1979-1981 | 46% | 70% | 49% | 70% | 28% |
1982-1986 | 46% | 50% | 35% | 50% | 20% |
1987 | 40% | 39% | 33% | 39% | 28% |
1988-1990 | 34% | 28% | 28% | 28% | 28% |
1991-1992 | 34% | 31% | 30% | 31% | 28% |
1993-1996 | 35% | 40% | 34% | 40% | 28% |
1997-2000 | 35% | 40% | 30% | 40% | 20% |
2001-2002 | 35% | 39% | 30% | 39% | 20% |
2003-2012 | 35% | 35% | 15% | 15% | 15% |
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