Problem 17.047 A division of Midland Oil & Gas has a taxable income (TI) of $9.55 million for a tax year. If the state tax rate averages 4% for all states in which the corporation operates, find the equivalent after-tax rate of return (ROR) required of projects that are justified only if they can demonstrate a before-tax return of 22% per year. Use the table given below to calculate taxes, the average tax rate Te and after-tax ROR If Taxable Income ($) Is: But Not Of the Over over Tax Is Amount over 50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 15% 7,500 + 25% 13,750 + 34% 22.250 + 39% 113,900 + 34% 3,400,000 + 35% 5,150,000 + 38% 35% 50,000 75,000 100,000 335,000 10,000,000 15,000,000 0 The equivalent after-tax ROR is determined to be