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Given the Following Information, Calculate the Appropriate After-Tax Discount Rate

Question 27

Multiple Choice

Given the following information, calculate the appropriate after-tax discount rate. Tax rate on comparable risk investment: 35%, Investor's before-tax opportunity cost: 12%, Capitalization rate: 8%.


A) 2.8%
B) 4.2%
C) 5.2%
D) 7.8%

Correct Answer:

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