Suppose a Miller Equilibrium Exists with a Corporate Tax Rate

question 66

Multiple Choice

Suppose a Miller equilibrium exists with a corporate tax rate of 30% and a personal tax rate on income from bonds of 35%. What is the personal tax rate on income from stocks?

• A) 0.0%
• B) 7.1%
• C) 10.05%
• D) 45.5%
• E) None of these.

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