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II need help with this problem. the correct answer is listed below. thanks You are investing $X immediately in a stock that you will keep
II need help with this problem. the correct answer is listed below. thanks
"You are investing $X immediately in a stock that you will keep for 15 years. At the end of 15 years, the stock will be worth $17,322 with a probability of 0.47 and worth $22,662 with a probability of 0.53. When you sell the stock, you will need to pay taxes on the profit earned from selling the stock (i.e., taxes on the difference between the selling and buying prices of the stock). The tax rate will be 10% with a probability of 0.88 or 20% with a probability of 0.12. Your MARR is 5.2%. You will only invest in the stock if your expected net present worth is larger than 0. Find the largest possible value of X." You Answered Correct Answers Between 8,740 and 8,916Step by Step Solution
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