1. By defining after-tax income, demonstrate the differences resulting from a $2,000 tax credit versus a $2,000 tax deduction for a single taxpayer in the 25% tax bracket with $39,000 of pre-tax income. Round your answers to two decimal places. (Use Exhibit 3.3 .)
Deduction $ __________
Credit $ __________
2. XYZ Inc. has total debt ratio of 0.42. Calculate the company's equity multiplier.
a. 2.63
b. 1.72
c. 3.04
d. 0.61