Answered: If the after-tax ROR is 11.4% and the…

If the after-tax ROR is 11.4% and the corporate Te is 39%, the approximate before-tax rate of return is closest to: (a) 6.8% (b) 15.4% (c) 18.7% (d ) 19.7%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the after-tax ROR is 11.4% and the corporate Te
is 39%, the approximate before-tax rate of return is
closest to:
(a) 6.8%
(b) 15.4%
(c) 18.7%
(d ) 19.7%

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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