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EpiscoWhat EpiscoWhat
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Consider the following equation:

Pretain = Pcum × 

The term τc in this equation represents:
A) the corporation's tax rate on interest income.
B) the investor's tax rate on interest income.
C) the investor's tax rate on cumulative dividends.
D) the investor's tax rate on capital gains.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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