Personal tax rate on income from stocks


Suppose a Miller equilibrium exists with corporate tax rate of 30% and 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 the above.

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Finance Basics: Personal tax rate on income from stocks
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