The marginal tax rate paid on a firm's ordinary income can be calculated by dividing its taxes by its net income.

Name: The marginal tax rate paid on a firm's ordinary income can be calculated by dividing its taxes by its net income.
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The marginal tax rate refers to the rate at which the next dollar of taxable income would be taxed, not the average rate calculated by dividing total taxes by net income, which gives the effective tax rate.

The Marginal Tax Rate Paid on a Firm's Ordinary Income