A & K CoExpects to Have Earnings Before Taxes of $250,000 to $300,000

Multiple Choice

A & K Co.expects to have earnings before taxes of $250,000 to $300,000.The company's marginal tax rate is 39% and its average tax rate about 33%.For every additional dollar A & K pays out in common dividends,its income tax liability will

A) increase by 39 cents.
B) fall by 39 cents.
C) be unaffected.
D) fall by about 33 cents.