Use the Table for the Question(s)below

question 15

Multiple Choice

Use the table for the question(s) below.
Consider the following historical top federal tax rates in the United States:
Personal Tax Rates
-In 2005,assuming an average dividend payout ratio of 50%,the effective tax rate for equity holders was closest to:

• A)30%.
• B)55%.
• C)45%.
• D)50%.

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Definitions:

Sales Dollars

Revenue generated from the sale of goods and services, expressed in monetary units.

Break-Even

The point at which total costs and total sales are equal, resulting in no net loss or gain.

Common Fixed Expenses

Expenses that do not change with the level of production or sales over a certain period and are shared among different segments or products of a business.

Break-Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain.