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 ?

Civil Engineering Mcqs

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 ?

(A)  12.07 %

(B)  12.34 %

(C)  12.67 %

(D)  12.87 %

Submitted By :Ali Uppal

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