Which of the Following Statements Is Correct

question 41

Multiple Choice

Which of the following statements is correct?

• A) For the most part, our national tax rates are progressive, because higher incomes are taxed at higher average rates.
• B) Bonds issued by a municipality such as the city of Tshwane would carry a lower interest rate than bonds with the same risk and maturity issued by a private corporation such as Tshwane Retailers.
• C) Our national tax laws tend to encourage corporations to finance with debt rather than with equity securities.
• D) Our national tax laws encourage the managers of corporations with surplus cash to invest it in shares rather than in bonds.However, other factors may offset tax considerations.
• E) All of the above statements are true.

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