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:

Dissolution

The closing down or dismissal of an assembly, partnership, or official body, often referring to the legal termination of an organization’s existence.

Isomorphism

The process through which organizations in the same sector or field become increasingly similar in their structures, processes, and practices, often in response to regulatory, competitive, or cultural pressures.

Mimetic Isomorphism

A process by which organizations emulate others in their field or industry, often in response to uncertainty or to gain legitimacy.

Coercive

Relating to or involving force or compulsion, often used in the context of power or authority.