What is the gain from leverage for Bavarian Brew if the corporate tax rate equals 34%.In addition the personal tax rate on dividends for investors is 15% and the personal income tax on interest income equals 40%.

Name: What is the gain from leverage for Bavarian Brew if the corporate tax rate equals 34%.In addition the personal tax rate on dividends for investors is 15% and the personal income tax on interest income equals 40%.
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Quizplus · Accepted Answer

1-{(1-.034)(1-.15)/(1-.4)}(1,000,000)= 65,000

What Is the Gain from Leverage for Bavarian Brew If