- #1
0xCMD
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Greetings,
I'm trying to solve a 3 part problem which has the following questions:
a) Determine the rate of return before taxes.
After Solving: Answer: 21 %
b) If the effective income tax rate is 42 percent, what is the approximate after-tax rate of return?
After Solving: Answer: 8 %
c) What is the actual after-tax rate of return?
I don't really understand this question, I can't tell the difference between (approximate after-tax rate of return) and (actual after-tax rate of return)
Does anyone Know the difference?
thanks.
[FONT="][/FONT]
I'm trying to solve a 3 part problem which has the following questions:
a) Determine the rate of return before taxes.
After Solving: Answer: 21 %
b) If the effective income tax rate is 42 percent, what is the approximate after-tax rate of return?
After Solving: Answer: 8 %
c) What is the actual after-tax rate of return?
I don't really understand this question, I can't tell the difference between (approximate after-tax rate of return) and (actual after-tax rate of return)
Does anyone Know the difference?
thanks.
[FONT="][/FONT]