Which of the following is the best definition of the "marginal tax rate"? Multiple Choice Total taxes paid divided by total taxable income The highest tax rate specified by the tax code for any level of income The lowest tax rate possible on any corporate income The after-tax equivalent cate of return on an investment The amount of tax payable on the next dollar earned The term "agency problem" is used to describe the situation in which the managers of the company take actions which are not in the best interests of the company's shareholders. True or False True False The balance sheet is a report of the firm's assets and funding as of the end of business on a particular date, while the income statement reports the firm's revenues and expenses which occur during a specified period of time. True or False True False Under U.S. GAAP, there are two different forms of the statement of cash flows - the direct method and the indirect method. True or False True False If a firm has costs which are higher than average, then the firm's profit margin will be lower than average. True or False True False