(Answered) Irvina the investor wants to receive 3 after-tax return a

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Irvina the investor wants to receive 3% after-tax return.

(a) If the tax rate is 15%, what before-tax, interest rate will Irvina ask borrowers to pay her?

(b) Irvina still wants 3% in after-tax return. If the tax rate is 30%, before-tax, interest rate will Irvina ask borrowers to pay her now?

(c) With the tax rate on one axis, and the before-tax interest rate on the other, draw the relationship between the tax rate and the before-tax interest rate.

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