If the property before tax cashflow (PBTCF) in a given year is $125,000, total debt service is $85,000, investor's income tax rate is 35% on a taxable income from the property of $40,000, what is the equity after tax cash flow (EATCF) of the investor? O a. $26,000 Ob. $27.500 OC. $14,000 O d. $18.200
If the property before tax cashflow (PBTCF) in a given year is $125,000, total debt service is $85,000, investor's income tax rate is 35% on a taxable income from the property of $40,000, what is the equity after tax cash flow (EATCF) of the investor? O a. $26,000 Ob. $27.500 OC. $14,000 O d. $18.200
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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![If the property before tax cashflow (PBTCF) in a given year is $125,000, total debt service is $85,000, investor's income tax rate is 35% on a taxable income from the property of $40,000, what is the
equity after tax cash flow (EATCF) of the investor?
O a. $26,000
O b. $27,500
Oc. $14,000
O d. $18,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F70a33b25-a7ef-4a36-8ab3-1b4dea5f7bc2%2F939966f2-3349-4b7a-8779-37f2127b5aef%2Fmca061g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If the property before tax cashflow (PBTCF) in a given year is $125,000, total debt service is $85,000, investor's income tax rate is 35% on a taxable income from the property of $40,000, what is the
equity after tax cash flow (EATCF) of the investor?
O a. $26,000
O b. $27,500
Oc. $14,000
O d. $18,200
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