Refer to Bavarian Brew.If the corporate tax rate equals 34% and the personal tax rate on interest income equals 40%,for which tax rate on dividend income is the gain from leverage equal to zero?

Name: Refer to Bavarian Brew.If the corporate tax rate equals 34% and the personal tax rate on interest income equals 40%,for which tax rate on dividend income is the gain from leverage equal to zero?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

1-(1-.34)(1-t)/(1-.4)= 0
t = .0909