1. Why in a partnership does the annualized after-tax rate of return not increase as the investment horizon (i.e., holding period) n increases? Under what conditions would the annualized after-tax rate of return in a C corporation not increase as the investment horizon (i.e., holding period) n increases?

2. If Biden wins the Presidency, he has stated that he will among other items increase the capital gains tax rate. How does the pretax (before both corporate and shareholder level tax) rate of return that a C corporation must earn to be competitive with an S corporation change if Biden increases the capital gains tax rate on individual investors tax rates?