Question 22 (4 points) Mantle Corporation is considering two equally risky investments: A $5,000 investment...
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Question 22 (4 points) Mantle Corporation is considering two equally risky investments: A $5,000 investment in preferred stock that yields 6.95% A $5,000 investment in a corporate bond that yields 10% What is the breakeven corporate tax rate that makes the company indifferent between the two investments? Assume a 90% dividend exclusion for tax on dividends. (Do not round your intermediate answer and round your final answer to Two decimal places.) 47:019 48.17% 38.53 29.296
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