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"In Slobovia, an obscure European country, dividends and interest are given the same tax treatment: they are both deductible at the corporate...

"In Slobovia, an obscure European country, dividends and interest are given the same tax treatment: they are both deductible at the corporate level and both taxed as income at the investor’s level. All else the same, where would you expect more corporate bankruptcies, in Slobovia or in the US? Explain.

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