Stephanie and Mitch Are Married and They File a Joint

question 62

Multiple Choice

Stephanie and Mitch are married and they file a joint tax return.Mitch received a slightly higher salary than Stephanie did during the year.Which of the following statements is true?

• A) Stephanie and Mitch likely pay no tax marriage penalty nor receive a tax marriage benefit.
• B) Stephanie and Mitch likely pay a tax marriage penalty.
• C) Stephanie and Mitch likely receive a tax marriage benefit.
• D) Stephanie and Mitch likely will pay a tax marriage penalty and receive a tax marriage benefit.

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Definitions:

Cost Of Capital

The rate of return a company must earn on its investment to maintain its market value and attract funds. It represents the cost of a company to secure funds, whether through debt or equity.

Capital Component

One of three sources of capital: debt, preferred stock, or equity.

Required By Investors

Refers to the expectations or conditions that investors demand before committing capital to an investment.

Capital Structure

The combination of borrowing and ownership investments utilized by a company to finance its activities and expansion.