An Investor Has a Marginal Tax Rate of 37 Per

question 42

Multiple Choice

An investor has a marginal tax rate of 37 per cent and an average tax rate of 32 per cent this year. The appropriate tax rate to be applied on the dividend income generated from their share investment is:

• A) the average tax rate.
• B) the marginal tax rate.
• C) either one.
• D) none of the above.

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Definitions:

Attribution Theory

A psychological theory that seeks to explain how individuals infer the causes of their own and others' behavior, attributing them to internal dispositions or external situations.

Cognitive Dissonance Theory

A psychological theory that explains the discomfort that arises from holding two conflicting beliefs simultaneously, leading individuals to change their attitudes, beliefs, or behaviors to reduce the discomfort.

Role-Playing Theory

A theory that suggests individuals adopt certain behaviors or attitudes when they are assigned specific roles, influencing their social interactions and identity.

Racial Bias

A form of prejudice that results in the unjust favoring or disadvantaging of individuals based on race.