In volume 6 schweser, exam 2, am session, question 6 p. 83. why did they use before-tax return instead of after-tax return. the question just asked for required return? is it fair to assume that if they simply ask for required return, that we should provide after-tax return?
I usually provide both before and after tax required returns (assuming a tax rate is given). Just to be safe.
the exam will be specific
schweser had errata on one of the pre-tax after-tax return IPS questions in vol 1 exams… forgot which though.
Don’t know the specific problem you are referring to, but some organizations are tax-exempt (pension funds and endowments, and parts of insurance and maybe bank profits are exempt). You do need to know that pension funds and endowments/foundations are tax exempt. Hopefully they will give you extra details if it’s insurance.