real post tax profit rate

[manisha sachdeva]

suppose the rate of profit is 20 percent,profit income is taxed @ 30% and the rate of inflation is 5%.
what will be the real post tax profit rate?
please explain step by step

[shivani76]

Take income as 100..
After profit income is 120..
20-profit income..
After taxing 20 at 30%,u get 6.
After tax profit = 20-6=14
Real=nominal-infltion
=14-5
Ans.a

[manisha sachdeva]

thnkyou so much shivani.:) :)

can u please solve me the ques 5 ,64 and 65 of jnu 2011.

i wil really appreciate it.wnever u get time ...

On Sat, May 3, 2014 at 10:17 PM, shivani76 [via Discussion forum] <[hidden email]> wrote:

Take income as 100..
After profit income is 120..
20-profit income..
After taxing 20 at 30%,u get 6.
After tax profit = 20-6=14
Real=nominal-infltion
=14-5
Ans.a

---

If you reply to this email, your message will be added to the discussion below:

http://discussion-forum.2150183.n2.nabble.com/real-post-tax-profit-rate-tp7588404p7588411.html

To unsubscribe from real post tax profit rate, click here.
NAML

[shivani76]

5.
p+q=-b
pq=c for given equation
sum and product of roots

now sum of new roots=-2pq
product=(pq)^2 - (p+q)^2

just compare these roots with old values..

youll get new equation as the ans

ans A.

[shivani76]

64
ans.c

since no real root..so no intersection

65.
ans. d

add 2 to all solutions..

[manisha sachdeva]

thnyou so much shivani,

can u plz tel me why have u added 2 to all the solutions in ques 65

On Sun, May 4, 2014 at 12:58 AM, shivani76 [via Discussion forum] <[hidden email]> wrote:

64
ans.c

since no real root..so no intersection

65.
ans. d

add 2 to all solutions..

---

If you reply to this email, your message will be added to the discussion below:

http://discussion-forum.2150183.n2.nabble.com/real-post-tax-profit-rate-tp7588404p7588447.html

To unsubscribe from real post tax profit rate, click here.
NAML

[diksha asija]

HI SHIVANI , i have a query , we are calculating after tax profit income in absolute terms i.e. 14 ,then how u deducted 5% rate of inflation ?