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[Steps Shown] QUESTION: Suppose that a company can direct $1 to either debt interest or to capital gains for equity investors. The capital gains tax rate

QUESTION: Suppose that a company can direct $1 to either debt interest or to capital gains for equity investors. The capital gains tax rate is 15 percent. An investor paying a personal tax rate of ______ would not care how the money is channelled. The marginal corporate tax rate is 21 percent. (2 decimals). Note: If you believe the correct answer is for example 50% then write 0.50.

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