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5 Cards in this Set
- Front
- Back
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Average tax rate |
A firm's taxes divided by its taxable income. |
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Marginal tax rate |
The rate at which additional income is taxed. |
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Double taxation |
Situation that occurs when after-tax corporate earnings are distributed as cash dividends to stockholders, who then must pay personal taxes on the dividend amount. |
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Interest expense is.... |
tax-deductible. This reduces their after tax cost to the firm. |
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Capital gains |
The amount by which the sale price of an asset exceeds the asset's purchase price. |
