Suppose that a company can direct $1 to either debt interest or to capital gains for equity investors.The capital gains tax rate is 15%.Which investor would not care how the money is channeled? (The marginal corporate tax rate is 35%.)
A)investors paying zero personal tax
B)investors paying a personal tax rate of 53%
C)investors paying a personal tax rate of 17.5%
D)investors paying a personal tax rate of 45%

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The Answer of Suppose that a company can direct $1 to either debt interest or to capital gains for equity investors.The capital gains tax rate is 15%.Which investor would not care how the money is channeled? (The marginal corporate tax rate is 35%.)
A)investors paying zero personal tax
B)investors paying a personal tax rate of 53%
C)investors paying a personal tax rate of 17.5%
D)investors paying a personal tax rate of 45%

Suppose That a Company Can Direct $1 to Either Debt