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Determine the marginal contribution of debt

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Determine the marginal contribution of debt for the following combinations of personal tax rates on interest income (TB), distributions to equity holders (TS), and the corporate tax rate (TC).

TC                               TS                                TB                   Marginal Contribution            

.20                              .20                              .20                          ____

.20                              .35                              .20                          ____

.20                              .20                            .35                            ____

.20                              .35                              .35                          ____

.35                              .20                              .20                          ____   

.35                              .35                              .20                          ____

.35                              .20                            .35                            ____

.35                              .35                              .35                          ____

Reference no: EM132699368

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