Question
Investment A offers a pre-tax return of 10%. Investment B is tax-free and offers a return of 7.5%. You are in the 30% marginal tax
Investment A offers a pre-tax return of 10%. Investment B is tax-free and offers a return of 7.5%. You are in the 30% marginal tax bracket. Which of these investments will provide you with the highest return after taxes are paid?
A. Both investments will have the same after-tax returns
B. Investment B
C. Investment A
D. Not enough information to calculate the after-tax returns
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Mergers Acquisitions And Other Restructuring Activities
Authors: Donald DePamphilis
11th Edition
012819782X, 978-0128197820
