PPT Slide

Solve for T in this equation:

Muni yield = Corp yield(1 - T)

7.00% = 10.0%(1 - T)

7.00% = 10.0% - 10.0%(T)

10.0%(T) = 3.0%

T = 3.0%/0.10

T = 30.0%.

At what tax rate would you be

indifferent to muni vs. corp?

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