Eric Systems located in Georgia expects a 10% after-tax rate of return on equipment investments. The state income tax rate is 6%. If the company is in the 34% federal tax bracket, estimate the before-tax rate of return required.

Name: Eric Systems located in Georgia expects a 10% after-tax rate of return on equipment investments. The state income tax rate is 6%. If the company is in the 34% federal tax bracket, estimate the before-tax rate of return required.
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The Answer is C

Eric Systems Located in Georgia Expects a 10% After-Tax Rate