2. Which of the following is not true?

a. Average tax rates go down as incomes increase

b. Marginal tax rates go down later

c. Average and marginal rates converge later on

d. Corporate taxation (in the U.S.) becomes a flat rate for the highest incomes

3. Which of the following is not true?

a. Financial statements analysis (FSA) is a traditional way of decomposing return on equity.

b. There is an underlying theory for FSA for guiding us in our judgments.

c. FSA is only limited by your imagination, so to speak.

d. FSA is useful for peer group analysis as well as time trend analysis.