A Property Produces an After Tax Internal Rate of Return

question 13

Multiple Choice

A property produces an after tax internal rate of return of 12.24%.If the investor has a marginal tax rate of 31%,what is the before-tax equivalent yield?

• A)8.45%
• B)11.39%
• C)16.03%
• D)17.74%

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Definitions:

AICPA

The American Institute of Certified Public Accountants, a professional organization for certified public accountants in the United States.

SEC

Stands for the Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.

Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting.

Financial Accountants

Professionals specializing in managing and reporting a company's financial transactions, ensuring compliance with accounting principles and regulations.