The equivalent after-tax return for an investment is computed a O Pretax return / (1 1901 tax rate) Pretax return / tax rate O Pretax return tax rate Pretax return * (1 - tax rate)

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
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The equivalent after-tax return for an investment is computed a
O
● Pretax return / (1 - tax rate)
O Pretax return / tax rate
Pretax return * tax rate
O Pretax return * (1 - tax rate)
Transcribed Image Text:The equivalent after-tax return for an investment is computed a O ● Pretax return / (1 - tax rate) O Pretax return / tax rate Pretax return * tax rate O Pretax return * (1 - tax rate)
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