Student Doubts Forum

Problem 37

Problem 37

by Marta Maria Sequeira Antão -
Number of replies: 1

On the exercise 37.5, the 30% tax rate is a rate of what?

In reply to Marta Maria Sequeira Antão

Re: Problem 37

by Pedro Pinto da Silva Perdigão -
Hello Marta,

The 30% tax rate referred on the exercise is a tax on profit, meaning, assuming that the company pays a 30% tax on its profits (after discounting variable and fixed costs to its revenues)

Good study!