What is the after-tax real rate of return on your investment

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You purchase a share of stock for $60. One year later you receive $3.00 as dividend and sell the share for $63. What was your holding period return? Suppose the rate of inflation over the year was 10%. What was the exact rate of growth of purchasing power? Suppose the tax rate on dividends is 40% and the tax rate on capital gain is 33%. What is the after-tax real rate of return on your investment?

Reference no: EM131055740

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