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Komiko Tanaka invests $12,000 in LymaBean, Inc. LymaBean does not pay any dividends. Komiko projects that her investment will generate a 10 percent before-tax rate

Komiko Tanaka invests $12,000 in LymaBean, Inc. LymaBean does not pay any dividends. Komiko projects that her investment will generate a 10 percent before-tax rate of return. She plans to invest for the long term.

a.

How much cash will Komiko retain, after-taxes, if she holds the investment for 5 years and then she sells it when the long-term capital gains rate is 15 percent? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

b.

What is Komikos after-tax rate of return on her investment in part (a)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c.

How much cash will Komiko retain, after-taxes, if she holds the investment for 5 years and then sells when the long-term capital gains rate is 25 percent? (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

d.

What is Komikos after-tax rate of return on her investment in part (c)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

e.

How much cash will Komiko retain, after taxes, if she holds the investment for 15 years and then she sells when the long-term capital gains rate is 15 percent? (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

f.

What is Komikos after-tax rate of return on her investment in part (e)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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