1) For a company that has $1,000 in taxable income and the tax rates are as follows: For taxable income up to $800 - tax rate = 20% For income above $800 - tax rate = 40% What are the firm's average and marginal tax rates?
2) An investor buys a stock for $80, and one year later receives a $5 dividend and sells the stock for $79. What was the investor's return?