The marginal income tax rate is 28% and before tax rate of return is 14.5% then the after tax rate of return is __________?
Correct answer: D. 0.1044
- A. 0.0744
- B. 0.0844
- C. 0.0944
- D. 0.1044
Explanation
The after-tax return is the before-tax return multiplied by one minus the tax rate: 14.5% × (1 − 0.28) = 10.44%, or 0.1044.
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