IPS Before-Tax returns: How to handle inflation 2010, account, returns, required

Muddahudda

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?



Edited 2 time(s). Last edit at Thursday, June 3, 2010 at 07:47PM by coolseagle.

lcw77

dude.... use the search feature