The tax table will be used for the following 4 questions.

TAXABLE INCOME

FROM	TO	MARGINAL TAX RATE
0	50,000	0.15
50,000	75,000	0.25
75,000	100,000	0.34
100,000	335,000	0.39

1. For an income of $250,000. What is the total tax bill?

(A) 80750 (B) 8500 (C) 90750 (D) 97500

2. For an income of $250,000. How much is the average tax rate?

(A) 0.340 (B) 0.333 (C) 0.323 (D) 0.390

3. For an income of $250,000. How much is the marginal tax rate?

(A) 0.32 (B) 0.34 (C) 0.36 (D) 0.39

4. Explain the core principles of business finance. In particular (A) Describe the goal of business finance. (B) List the major long-term and short-term financial decisions. (C) Give an example for each major decision.