Personal tax rate on income from bonds is 34%. Persona tax rate on income from stocks is 20%. With the above information, what is the critical corporate tax rate below which leverage will add no value to the unlevered firm per dollar of debt?

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The Answer of Personal tax rate on income from bonds is 34%. Persona tax rate on income from stocks is 20%. With the above information, what is the critical corporate tax rate below which leverage will add no value to the unlevered firm per dollar of debt?

Personal Tax Rate on Income from Bonds Is 34