Komiko Tanaka invests $12,000 in LymaBean, Inc. LymaBean does not pay any dividends. Komiko projects that her investment will generate a 9 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 6 years and then she sells it when the long-term capital gains rate is 15 percent?

B) If she holds the investment for 6 years and then she sells it when the long-term capital gains rate is 15 percent, what is her after-tax rate of return?