If the after-tax rate of return for a cash flow series is 11.9% and the corporate effective

Question:

If the after-tax rate of return for a cash flow series is 11.9% and the corporate effective tax rate is 34%, the approximated before-tax rate of return is closest to:

(a) 6.8%

(b) 5.4%

(d) 28.7%

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

See More Books

Question Posted: Dec 17, 2012 06:36 AM

See More Questions

The expected average rate of return for a proposed investment of $600,000 in a fixed asset, with a useful life of four years, straight-line depreciation, no residual value, and an expected total net...
If the before tax rate of return on a riskless fully taxable bond is 7% and the before tax rate of return on a riskless tax favored asset is 5%, what is the implicit tax rate on the tax favored...
The income component of return for a preferred stock comes from the cash dividend a firm pays. True/False
B. Giulia runs at 4.5 m/s (1 m/s is 2.2 mi/h ... just think "about 2 mi/h"). She is running eastward into the sunrise and along a straight-line path. Show a complete sketch from when you start...
For a particle in a one-dimensional box of length l, consider an infinitesimal interval of length dl that lies within the box. For each of the following stationary states, state which location(s) of...
How are start-up firms usually financed? Randys, a family-owned restaurant chain operating in Alabama, has grown to the point at which expansion throughout the entire Southeast is feasible. The...
2. Calculate the balance of each partners capital if the assets of the partnership are not revalued.
When will the world run out of oil? One way to judge is to determine the oil reserves of the countries around the world. The next table displays the known oil reserves of the top 15 countries....
Blooming Flower Company was started in Year 1 when it acquired $61,300 cash from the issue of common stock. The following data summarize the company's first three years' operating activities. Assume...
If Starbucks wanted to offer compressed workweeks, flextime, or job sharing, what would they need to consider? What are advantages and disadvantages of offering these employment options at Starbucks?
The after-tax analysis for a $60,000 investment with associated gross income minus expenses (GIOE) is shown below for the first 2 years only. If the effective tax rate is 40%, the values for...
An asset purchased for $100,000 with S = $20,000 after 5 years was depreciated using the 5-year MACRS rates. Expenses averaged $18,000 per year, and the effective tax rate is 30%. The asset was...
Why is a handshake agreement a potentially dangerous form of business alliance? Are there any circumstances under which such an agreement may be appropriate?
GATE 2024-EE Question
GATE 2024-EE Question
GATE 2024-EE Question
What is Netduino?
What is Appolonius theorem?
Of what value are the notes to the financial state- ments and the audit report, both of which are usu- ally included in the annual report to shareholders?
A container holds 2.0 mol of gas. The total average kinetic energy of the gas molecules in the container is equal to the kinetic energy of an 8.0 10-3-kg bullet with a speed of 770 m/s. What is the...
What are the time domain specifications of a second-order system?
When he started work on his twenty-second birthday, D. B. Cooper decided to invest money each month with the objective of becoming a millionaire by the time he reaches age 65. If he expects his...
Linda 0' Shay deposited $30,000 in a savings account as a perpetual trust. She believes the account will earn 7% annual interest during the first 10 years and 5% interest thereafter. The trust is to...
A machine costs $20,000 and has a 5-year useful life. At the end of the 5 years, it can be sold for $4000. If annual interest is 8%, compounded semiannually, what is the equivalent uniform annual...
help me A 35% discount on 3 smart phone amounts to $385. What is the phone's list price? Answer =$ (rounded to the nearest cent)
What effect is there on the income statement and balance sheet when an expense is left too long as a liability
Which of the following programs covers custodial care? A HMOs B Medicare Part B C PPOs D Medicare Part A E Medicaid

If the after-tax rate of return for a cash flow series is 11.9% and the corporate effective

Question:

Step by Step Answer:

The before tax rate ...View the full answer

Engineering economy

Students also viewed these Economics questions