Just go to your computer calculator, and do the following. Type in 100 * .23(aka 23%), and you will get the answer 23. Its not that hard genius!
Just go to your computer calculator, and do the following. Type in 100 * .23(aka 23%), and you will get the answer 23. Its not that hard genius! If the 23% rate was an exclusive rate you would be correct. But that is the trick, they quote the rate based on the after tax price, not the base price.
You are wrong. The 23% is the percentage of the GROSS (after-tax) price, not the base price. In terms of the base price it is 30%.
If the gross price is $130, the BP is $100 since 23% of $130 is $30. Hence the gross price is 1.3*BP.
I know it's weird, but that's the way the FT is.