If the effective marginal tax rate is 25% and a firm can issue tax-free bonds...
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Accounting
If the effective marginal tax rate is 25% and a firm can issue tax-free bonds at a yield of 12%, then at what yield should this firm be able to issue taxable bonds?
A. 12%
B. 8%
C. 16%
D. 9%
E. 15%
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