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What is the relative tax advantage of debt? Assume that personal and corporate taxes are given by: Te - (corporate tax rate) = 21 percent:

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What is the relative tax advantage of debt? Assume that personal and corporate taxes are given by: Te - (corporate tax rate) = 21 percent: Tpg - personal tax rate on equity Income 15 percent and Tp-personal tax rate on interest income = 37 percent. Multiple Choice 135 116 0.94 06

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