If the state tax rate is 20% and the federal tax rate is 30%, what is the total effective tax rate? a.34% b.50% c.44% d. 37% 2. Holding all other variables constant, which of the following would increase return on equity? An increase in _____________. a. the tax rate b. the equity ratio (equity/total assets) c. total assets d. total asset turnover

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If the state tax rate is 20% and the federal tax rate is 30%, what is the total effective tax rate? a. 34% b. 50% c. 44% d. 37%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 12MC: The cost of equity is _______. A. the interest associated with debt B. the rate of return required...

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Question

If the state tax rate is 20% and the federal tax rate is 30%, what is the total effective tax rate?

a.

34%

b.

50%

c.

44%

d.

37%

2. Holding all other variables constant, which of the following would increase return on equity? An increase in _____________.

a. the tax rate

b. the equity ratio (equity/total assets)

c. total assets

d. total asset turnover

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