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Business, 19.12.2019 04:31 akhtar11

Assume that lucas's marginal tax rate is 32 percent and his tax rate on dividends is 15 percent. if a dividend-paying stock (with no growth potential) pays an 8 percent dividend yield, what interest rate would a municipal bond have to offer for lucas to be indifferent between the two investments from a cash-flow perspective?

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Assume that lucas's marginal tax rate is 32 percent and his tax rate on dividends is 15 percent. if...
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