Given the following information
interest rate 8%
tax rate 30%
dividend $1
price of common stock $50
growth rate of dividends 7%
debt ratio 40%
Determine the firm's cost of capital
Using the corporate tax rates provided in the text, what is the corporate income tax paid on earnings of
A. $1,000 B. $10,000 C. $100,000 D $1,000,000 E. $10,000,000