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An investor buys stock for $5,000 at the beginning of the year. She earns dividends of $200 during the course of the year. At the
An investor buys stock for $5,000 at the beginning of the year. She earns dividends of $200 during the course of the year. At the end of the year, the stock is worth $5,150. The tax rate on dividends and capital gains is 15 percent. The inflation rate is 2 percent. a. Calculate the investor's after-tax real return if she does not sell the stock at the end of the year.
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