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If "R" Equals the Before-Tax Rate of Return and "T

Question 67

Multiple Choice

If "R" equals the before-tax rate of return and "t" equals the investor's marginal tax rate,then the after-tax rate of return represented by "r" can be expressed as


A) r = R(1 - t) .
B) r = R(1 + t) .
C) r = (1 + t) R.
D) r = R - t.

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