IPS Before-Tax returns: How to handle inflation returns, required, before, whereas, noticed

ashycal

For calculating before-tax required returns should we divide inflation rate by (1-tax rate) before adding it to the required return or should we just add it as-is?
I have noticed that in some places they add inflation rate as-is whereas in other places they take taxes into account.
Anyone knows what’s the right approach to take for the exam?

justin88

dude…. use the search feature