Mantle Corporation is considering two equally risky investments:(1) A $5,000 investment in preferred stock which yields 7 percent.(2) A $5,000…

Mantle Corporation is considering two equally risky investments:(1) A $5,000 investment in preferred stock which yields 7 percent.(2) A $5,000 investment in a corporate bond which yields 10 percent.What is the break-even corporate tax rate which makes the company indifferent between the two investments?a. 33.17%b. 34.00%c. 37.97%d. 42.15%e. 42.86% a. 33.17% b. 34% c. 37.97% d. 42.15% e. 42.86%

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