Question
2. You own a traditional IRA which includes stock in LMC. When you were 55 years old, you purchased 100 shares of LMC for $8.00
2. You own a traditional IRA which includes stock in LMC. When you were 55 years old, you purchased 100 shares of LMC for $8.00 per share. You are now 70 years old, and LMC is worth $36.00 per share. You are in the 32% income tax bracket and pay 15% on long-term capital gains. a. At what annual growth rate did the stock appreciate in value? b. If you withdraw the funds, how much tax will you pay?
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Entrepreneurial Finance
Authors: Philip J. Adelman, Alan M. Marks
4th Edition
0132434792, 9780132434799
