Q4-1 True or false? Discuss.

a. The implicit tax rate on an asset cannot be calculated without a benchmark asset against which to compare pretax returns.

b. The implicit tax rate is always positive.

c. The implicit tax rate is always less than the explicit tax rate.

d. Whereas explicit taxes are paid to taxing authorities, implicit taxes are subsidies paid to the issuers of securities, consumers of goods and services, and suppliers of factor inputs.