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Mantle Corporation Is Considering Two Equally Risky Investments: What Is

Question 107

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Mantle Corporation is considering two equally risky investments: What is the breakeven corporate tax rate that makes the company indifferent between the two investments? Assume a 50.00% dividend exclusion for tax on dividends.(Do not round your intermediate answer and round your final answer to two decimal places. )
Mantle Corporation is considering two equally risky investments: What is the breakeven corporate tax rate that makes the company indifferent between the two investments? Assume a 50.00% dividend exclusion for tax on dividends.(Do not round your intermediate answer and round your final answer to two decimal places. )    A)  39.48% B)  43.47% C)  42.58% D)  44.36% E)  33.27%


A) 39.48%
B) 43.47%
C) 42.58%
D) 44.36%
E) 33.27%

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