A businessman wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

A businessman wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?

A. 12.1% C. 12.7%
B. 11.1% D. 10.7%

Jhun Vert Thu, 07/04/2024 - 19:03

Solution