If "R" equals the before-tax rate of return and "t" equals the investor's marginal tax rate, then the after-tax rate of return represented by "r" can be expressed as

A) r = R(1 - t).
B) r = R(1 + t).
C) r = (1 + t)R.
D) r = R - t.


A) r = R(1 - t).

R(1 - t) is the formula to compute after-tax rate of return.

Business

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