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Teresa White Is One of 5 Equal Limited Partners in House

Question 3

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Teresa White is one of 5 equal limited partners in House Designs Enterprises (HDE).She contributed $100,000 five years ago when the enterprise began.During the year,HDE generated pre-tax profits of $500,000.The sole general partner,Betty Carmel,receives 55% of the company's profits.Both Teresa and Betty are subject to a 45% marginal personal tax rate.
Required:
Calculate Teresa's after-tax rate of return on her investment.

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