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 ____________?

The formula for after-tax return is: After-tax return = Before-tax return × (1 − tax rate) = 0.155 × (1 − 0.468) = 0.155 × 0.532 = 0.08246 This represents the investor’s net return after taxes are deducted.... Read More