Which of the following formulas can be used to represent targeted pretax profit, B , as a function of targeted after-tax profit, A

Which of the following formulas can be used to represent targeted pretax profit, π_B, as a function of targeted after-tax profit, π_A, given an effective income tax rate of t?

Multiple Choice

• π_B = (1 + t)/π_A

• π_B = π_A × (1 − t)

• π_B = π_A/(1 - t)

• π_B = FC/(1 − t)

• π_B = π_A × (1 + t)