User Account

All Pages

What would have been the annualized after-tax rate of return

Assignment Help Accounting Basics
Reference no: EM133103871

Question - A taxpayer can invest $5,000 in a common stock that pays no dividends but appreciates at a rate of 8%. The taxpayer's tax rate is 30%. He plans to sell the stock after 30 years.

a. Find the after-tax accumulation and the annualized after-tax rate of return for this investment.

b. What would have been the annualized after-tax rate of return on the stock if there were a special tax rate of 20% on capital gains?

Reference no: EM133103871

Questions Cloud

Compute the net present value incorporating bob estimates : Compute the net present value incorporating Bob's estimates of the value of the intangible benefits, but still using the 11% discount rate
Tourism and food culture has largely changed : In past year there have been drastic changes in the world due to the pandemic. Our hospitality industry has been effected a lot as travel, tourism and food cult
Explain plan of action to fill the position : Question: You are asked to recruit an Account Manager for your company. As an HR executive, explain your plan of action to fill the position
Create a portfolio or personal website : Amalia was seeking a position as a fashion designer. She'd just graduated college and hadn't yet held a job in her field so she had no actual work samples to sh
What would have been the annualized after-tax rate of return : What would have been the annualized after-tax rate of return on the stock if there were a special tax rate of 20% on capital gains
Research method course : Research Method course? How did the Semester Project and other course assignments help you reach it?
Correct risk classification for this description : If provider and or government contracting and legal approval processes are lengthy than improved maintenance practices and improved system performance may be de
Explain the impact that sponsorships : For this assignment, you will write an essay with a strong introduction to propose and plan a sponsorship program that will promote the sports product, service,
Contribution margin and activity-based budgeting : Given the two selected techniques of Contribution Margin and Activity-Based Budgeting. Submit a thread of at least 500 words examining the relationship between

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd