But in the am past paper, we usually calculate the real return and add the inflation rate,then divide them by 1+ tax rate to get the required return before tax . it is much simple then those mentioned before.
The initial question was about Estate planning which is different from Required Return calculations. Both are tested heavily (In Spades as Magician said)!
Individual Portfolio Management is probably the largest section on the Level III exam. I’d absolutely know all of those tax calculations. Kind of painful memorizing them but they’re not too difficult.
You can also intuit a lot of what’s being asked without spending your memorization horsepower on the tax equations. Just think about TVM and relative value over time based on different tax rates and that should get you most of the way there
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