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 ? | MCQ Hive

Civil Engineering MCQs

Q 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 A. 12.07 %
B B. 12.34 %
C C. 12.67 %
D D. 12.87 %

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