A property project produces an after-tax return of 8.5% on total funds invested.  The investor can borrow funds for this project at 7.5% and the investor's marginal tax rate is 35.5%. Assuming an LVR (loan to value ratio) of 60%, the after-tax return on equity is?

Answer rating: 100% (QA)

To calculate the aftertax return on equity we need to consider the financing structure and the effec... View the full answer