Suppose that the personal tax rate on income from bonds is 34%,and the personal tax rate on income from stocks is 20%.What is the critical corporate tax rate below which leverage will add no value to the unlevered firm per dollar of debt?
A)32.4%
B)25.8%
C)17.5%
D)15.0%

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The Answer of Suppose that the personal tax rate on income from bonds is 34%,and the personal tax rate on income from stocks is 20%.What is the critical corporate tax rate below which leverage will add no value to the unlevered firm per dollar of debt?
A)32.4%
B)25.8%
C)17.5%
D)15.0%

Suppose That the Personal Tax Rate on Income from Bonds