What is the relative tax advantage of corporate debt if the corporate tax rate is...
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Accounting
What is the relative tax advantage of corporate debt if the corporate tax rate is Tc = 0.22, the personal tax rate is Tp = 0.12, but all equity income is received as capital gains and escapes tax entirely (TpE = 0)? (Do not round intermediate calculations. Round your answer to 4 decimal places.)
b. How does the relative tax advantage change if the company decides to pay out all equity income as cash dividends that are taxed at 14%?
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