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Consider the Following Equation

Question 77

Multiple Choice

Consider the following equation:
Pretain = Pcum Consider the following equation: P<sub>retain</sub> = P<sub>cum</sub> The term τ<sub>i</sub> in this equation represents A) the corporation's tax rate on interest income. B) the investor's tax rate on capital gains. C) the investor's tax rate on interest income. D) the investor's tax rate on cumulative dividends.
The term τi in this equation represents


A) the corporation's tax rate on interest income.
B) the investor's tax rate on capital gains.
C) the investor's tax rate on interest income.
D) the investor's tax rate on cumulative dividends.

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