after tax return equals pretax return

[carolinesherif]

How can this be, after tax return be equal to pretax return:

"When returns are subject to accrual taxes, the after-tax return is equal to the pretax return, r, multiplied by (1 − t_i) where t_i represents the tax rate applicable to investment income"

[125mph]

@carolinesherif

How can this be, after tax return be equal to pretax return:

"When returns are subject to accrual taxes, the after-tax return is equal to the pretax return, r, multiplied by (1 − t_i) where t_i represents the tax rate applicable to investment income"

The comma is a pause and not an ending, so continue reading the sentence in full.

That is saying the after tax return = Pretax Return * (1-t_i)

[carolinesherif]

Thanks 125mph, may I read it at midnight