If the marginal income tax rate is 46.8% and the before-tax rate of return is 15.5%, the after-tax rate of return is ____________?

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Accepted Answer

0.08246 - The formula for after-tax return is: After-tax return = Before-tax return &times; (1 &minus; tax rate) = 0.155 &times; (1 &minus; 0.468) = 0.155 &times; 0.532 = 0.08246 This represents the investor&rsquo;s net return after taxes are deducted.

MCQ Detailed View

If the marginal income tax rate is 46.8% and the before-tax rate of return is 15.5%, the after-tax rate of return is ____________?

Detailed Explanation

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MCQ Detailed View

If the marginal income tax rate is 46.8% and the before-tax rate of return is 15.5%, the after-tax rate of return is ____________?

Detailed Explanation

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In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…