<span>The herfindahl-hirschman index is the measure of the percentage market share of each firm summed over the largest 50 firms in a market.
HHI is the measure of market concentration. It is the commonly accepted measure. if H</span>erfindahl-Hirschman index is low and its four firm concentration ratio is low then the market is considered competitive.
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The answer is mostly True.
Answer:
Investor's before required rate of return is 12.5%
Explanation:
The investor required return is the pretax return on the investment before applying the tax rate of 28%.
The pretax rate of return on the investment can be computed using the after tax return formula below by changing the subject of the formula to pretax rate of return;
After rate of return=pretax rate of return*(1-t)
t is the tax rate of 28% or 0.28
pretax rate of return is unknown
after tax rate of return is 9%
pretax rate of return=after tax rate of return/(1-t)
pretax rate of return=9%/(1-0.28)
pretax rate of return=9%/0.72
pretax rate of return =12.5%
