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Consider the Following Formula

Question 69

Multiple Choice

Consider the following formula:
Τ* = Consider the following formula: Τ* = The term τ* is: A) the effective tax advantage of debt. B) the effective personal tax rate on interest income. C) the effective personal tax rate on equity. D) the effective corporate tax rate on income.
The term τ* is:


A) the effective tax advantage of debt.
B) the effective personal tax rate on interest income.
C) the effective personal tax rate on equity.
D) the effective corporate tax rate on income.

Correct Answer:

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