After-tax profits are computed as pre-tax profits multiplied by (1

Name: After-tax profits are computed as pre-tax profits multiplied by (1 - tax rate).
Brand: Quizplus
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Question

After-tax profits are computed as pre-tax profits multiplied by (1 - tax rate).

Quizplus · Accepted Answer

After-tax profits are computed by subtracting the tax expense from pre-tax profits, not by multiplying pre-tax profits by (1 - tax rate). The formula mentioned calculates the portion of profits remaining after taxes, not the after-tax profit itself.