Use the Table for the Question(s)below

question 3

Multiple Choice

Use the table for the question(s) below.
Consider the following historical top federal tax rates in the United States:
Personal Tax Rates
-In 2005,assuming an average dividend payout ratio of 50%,the effective tax advantage for debt (τ*) was closest to:

• A)24%.
• B)18%.
• C)35%.
• D)15%.

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Definitions:

Hypertension

A chronic medical condition where the blood pressure in the arteries is persistently elevated, posing health risks.

False Consensus Effect

The cognitive bias to overestimate how much other people share our beliefs, attitudes, and behaviors.

Conspicuous

Easily seen or noticed; attracting attention.

Drunkenness

A state of intoxication or impairment resulting from the consumption of alcohol.