1. What is the total effective tax rate?
2. What is taxable income for an individual? How does it differ from taxable income for a corporation?
3. What tax rate is important for investment decisions? Why?
4. Why is the tax treatment of capital gains an important financial issue?
5. Is the corporate tax schedule progressive? Why or why not?
6. What are the tax implications of financing with debt versus equity? If financing with debt is better, why doesn't everyone finance almost entirely with debt?
7. Why are dividends paid from one corporation to another partially tax exempt?
8. Explain the reasoning behind tax loss carry backs and carry forwards.