How much cash will komiko retain

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Question - Komiko Tanaka invests $24,500 in LymaBean, Inc. LymaBean does not pay any dividends. Komiko projects that her investment will generate a 10 percent before-tax rate of return. She plans to invest for the long term.

a. How much cash will Komiko retain, after-taxes, if she holds the investment for 5 years and then she sells it when the long-term capital gains rate is 15 percent?

b. What is Komiko's after-tax rate of return on her investment in part (a)?

c. How much cash will Komiko retain, after-taxes, if she holds the investment for 5 years and then sells when the long-term capital gains rate is 25 percent?

d. What is Komiko's after-tax rate of return on her investment in part (c)?

e. How much cash will Komiko retain, after taxes, if she holds the investment for 15 years and then she sells when the long-term capital gains rate is 15 percent?

f. What is Komiko's after-tax rate of return on her investment in part (e)?

Reference no: EM133047730

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