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What is the relative tax advantage ofdebt? Assume that personal and corporate taxes are given by: TC =(corporate tax rate) = 21 percent; TpE
What is the relative tax advantage ofdebt? Assume that personal and corporate taxes are given by: TC =(corporate tax rate) = 21 percent; TpE = personal tax rate on equityincome = 15 percent; and Tp =personal tax rate on interest income = 37 percent.
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To evaluate the relative tax advantage of debt we need to compare the tax treatment of equity income ...
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Principles of Corporate Finance
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
10th Edition
9780073530734, 77404890, 73530735, 978-0077404895
