Multiple Choice
An investment is available that pays a tax-free 6%.The corporate tax rate is 30%.Ignoring risk, what is the pre-tax return on taxable bonds?
A) 4.20%
B) 6.00%
C) 7.67%
D) 8.57%
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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