Mantle Corporation Is Considering Two Equally Risky Investments 1 A 5 000 Invest 1

Mantle Corporation is considering two equally risky investments:(1) A $5,000 investment in preferred stock which yields 7.1%.(2) A $5,000 investment in a corporate bond which yields 10%.What is the break-even corporate tax rate which makes the company indifferent between the two investments?a.41.64% b.45.32% c.36.85% d.43.11% e.28.01% a. 33.17% b. 34% c. 37.97% d. 42.15% e. 42.86%

 

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