Question
17. A bond pays nine percent, before tax. Assume a 30% tax rate. What is the after-tax return on the bond? Return before tax times
17. A bond pays nine percent, before tax. Assume a 30% tax rate. What is the after-tax return on the bond?
Return before tax times ( 1- taxrate) = After-tax return
9% x (1-0.30)
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Managerial Accounting
Authors: Ray H Garrison, Alan Webb, Theresa Libby
11th Canadian Edition
1259275817, 978-1259275814
