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Which of the following statements is most correct and explain why?

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Which of the following statements is most correct and explain why?;a. Indexing tax brackets reduces the extent of "bracket creep.;b. Bonds issued by a municipality such as the city of Miami would carry a lower interest rate than bonds with the same risk and maturity issued by a private corporation such as Florida Power & Light.;c. Our federal tax laws tend to encourage corporations to finance with debt rather than with equity securities.;d. Our federal tax laws encourage the managers of corporations with surplus cash to invest it in stocks rather than in bonds. However, other factors may offset tax considerations.;e. All of the above

 

Paper#28908 | Written in 18-Jul-2015

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