The Marginal Tax Rate Is

question 66

Multiple Choice

The marginal tax rate is:

• A) the rate paid on additional amounts of pre- tax income
• B) the highest possible rate the company might be expected to pay
• C) the lowest tax rate applicable to the company
• D) the average rate for the company

---

Definitions:

Present Value

The current value of an amount to be received in the future; a future amount discounted for compound interest.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value.

Voting Power

The total number of votes that can be cast in a corporation's decisions, typically based on the number of shares a shareholder owns.

Common Shareholders

Individuals or entities that own common stock in a company, giving them rights to vote at shareholders' meetings and to receive dividends.