What does double taxation of corporate income mean

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Reference no: EM132010265

1. What does double taxation of corporate income mean? Could income ever be subject to triple taxation? Explain your answer.

2. A 5 year single name CDS on IBM was quoted as follows on the same day. You could sell protection and receive 32.80 bps or buy protection by paying 36.10 bps. What is the implied rate of default on each side assuming the standard 40% recovery rate?

Reference no: EM132010265

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