i was doing a question of require return and the PRETAX living expenses are given. 1. are the net of tax living expenses less?? if so, why? i thought u get taxed when u spend 2. if tax rate is not given and we plug in the pretax living expense to calculate return requirement, we get the pretax rate of requirement?
Where did you see that? It doesn’t make any sense. You can’t talk about income taxes on expenses, they apply to income, not expenses.
maybe it means that is the amount of pretax income needed to meet the living expenses.