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Question 19 Given that the corporate tax rate = 21%, personal tax rate on income from...

Question 19

Given that the corporate tax rate = 21%, personal tax rate on income from bonds = 28%, and personal tax rate on income from stocks = 28%, leverage will add how much value to the unlevered firm per dollar of debt?

Group of answer choices

less than $.18

greater than $.26

between $.22 and .24

between $.24 and $.26

between $.18 and $.20

between $.20 and $.22

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