Question

The marginal income tax rate is 35% and before tax rate of return is 12.5% then the after tax rate of return is

a.

0.0613

b.

0.0713

c.

0.08125

d.

0.0913

Posted under Financial Management and Financial Markets

Answer: (c).0.08125

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Q. The marginal income tax rate is 35% and before tax rate of return is 12.5% then the after tax rate of return is
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