1. A businessman wishes to earn 7% on his capital after payment of taxes. If the income...
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Question:
1. A businessman 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 be investment offer to be justified?
a. 12.86%
b. 12.44%
c. 12.07%
d. 11.55%
2. In a 20‐item exam, each correct answer will give you 10points. However, a wrong answer will lose you 5 points. If you scored a total of 125 points. How many questions did you answer correctly?
a. 12
b. 14
c. 15
d. 16
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