Multiple Choice
Assume that Jose is indifferent between investing in a corporate bond that pays 10% interest and a stock with no growth potential that pays an 8% dividend yield. Assume that the tax rate on dividends is 15%. What is Jose's marginal tax rate?
A) 47%.
B) 37%.
C) 32%.
D) 15%.
E) None of the choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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