Problem 17.047 A division of Midland Oil & Gas has a taxable income (TI) of $9.65 million for a tax year. If the state tax rate averages 7% 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 (S) Is But Not over Of the Amount over Over Tax Is 0 50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,33.3 50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 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