If "R" Equals the Before-Tax Rate of Return and "T

question 67

Multiple Choice

If "R" equals the before-tax rate of return and "t" equals the investor's marginal tax rate,then the after-tax rate of return represented by "r" can be expressed as

• A)r = R(1 - t).
• B)r = R(1 + t).
• C)r = (1 + t)^R.
• D)r = R - t.