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%

Use the data in the table, to calculate the tax disadvantage of retained cash in:

a.1978

b. 1998

c. 1976