Professional Documents
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Chapt 2 Financial Market Environment
Chapt 2 Financial Market Environment
Market Environment
• NYSE
• http://www.youtube.com/watch?v=TPUDPhpCec
A&feature=player_detailpage
• CBOE
• http://www.youtube.com/watch?v=_UXomMnQK
T4&feature=player_detailpage
Example
Weber Manufacturing Inc. has before-tax earnings of $250,000.
Tax = $22,500 + [0.39 ($250,000 – $100,000)]
Tax = $22,500 + (0.39 $150,000)
Tax = $22,500 + $58,500 = $80,750
Example
What are Webster Manufacturing’s marginal and average tax rates?
Marginal Tax Rate = 39%
Average Tax Rate = $80,750/$250,000 = 32.3%