Multiple Choice
Assume that Juanita is indifferent between investing in a corporate bond that pays 10.2% interest and a stock with no growth potential that pays a 6% dividend yield.Assume that the tax rate on dividends is 15%.What is Juanita's marginal tax rate?
A) 50%.
B) 40%.
C) 30%.
D) 15%.
E) None of the choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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