Brent, a single taxpayer, has a 24% marginal tax rate. He is considering an investment that will earn qualified dividends at a r

Question

3 years ago

6

ate of 7% before tax. What is Brent's after-tax rate of return on the securities

1 answer:

Rashid [163] · Answer 1 · 2022-08-04T03:20:09+03:00

8 0

Answer:

Brent's after-tax rate of return on the securities is 5.32%

Explanation:

Given a 7% before tax dividend rate and a 24% marginal tax rate, the after-tax rate of return will be 5.32% (7% x (100%-24%).