Multiple Choice
Given the following information,leverage will add how much value to the unlevered firm per dollar of debt?
Corporate tax rate: 34%
Personal tax rate on income from bonds: 20%
Personal tax rate on income from stocks: 0%
A) $0.175
B) $0.472
C) $0.528
D) $0.825
E) None of these.
Correct Answer:
Verified
Correct Answer:
Verified
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