1612Civil EngineeringMedium
A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?
A12.07 %
B12.34 %
C12.87 %
D12.67 %
Correct answer
A. 12.07 %
Explanation
The correct answer is 12.07 %.