8. Velsicor Corporation has a 20% tax on corporate profits, its bondholders have a 35% personal tax rate on interest income, and its stockholders have a 25% personal tax rate on dividends and capital...

B1

Extracted text: 8. Velsicor Corporation has a 20% tax on corporate profits, its bondholders have a 35% personal tax rate on interest income, and its stockholders have a 25% personal tax rate on dividends and capital gains. Its debt currently has a market value of $1 million. What is the company's gain from leverage? Round your answer to the nearest dollar. A. $200,000 B. $306,667 C. $76,923 D. $800,000 E. None of the above