Question
Alan inherited $100,000 with the stipulation that he invest it to financially benefit his family. Alan and Alice decided they would invest the inheritance to
Alan inherited $100,000 with the stipulation that he invest it to financially benefit his family. Alan and Alice decided they would invest the inheritance to help them accomplish two financial goals: purchasing a Park City vacation home and saving for their son, Coopers, education. |
Vacation Home | Coopers Education | |||||
Initial investment | $ | 50,000 | $ | 50,000 | ||
Investment horizon | 5 | years | 18 | years | ||
|
Alan and Alice have a marginal income tax rate of 30 percent (capital gains rate of 15 percent) and have decided to investigate the following investment opportunities. |
Complete the two annual after-tax rates of return columns for each investment. (Round your answers to 3 decimal places.) |
Please show work as to how to figure out the Growth Stock.
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