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Business, 14.04.2020 20:57 isisg8

A corporation can earn 7.5% if it invests in municipal bonds. The corporation can also earn 8.5% (before-tax) by investing in preferred stock. Assume that the two investments have equal risk. What is the break-even corporate tax rate that makes the corporation indifferent between the two investments?

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A corporation can earn 7.5% if it invests in municipal bonds. The corporation can also earn 8.5% (be...
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