_ 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 investor wishes to earn 7% on his capital after payment of taxes.

1.	_ 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 %
Answer» B. 12.34 %

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_ 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?$?

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