0% = Τ = marginal corporate income tax rate
A. 8.67 percent
B. 8.00 percent
C. 7.60 percent
D. 7.33 percent
Answer:B
0% = Τ = marginal corporate income tax rate
A. 8.67 percent B. 8.00 percent C. 7.60 percent D. 7.33 percent
Explanation: 𝐾 = (1 − 0.5)(0.112) + 0.5(1 − 0.4)(0.08) = 0.08