Question
Komiko Tanaka invests $23,500 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 $23,500 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?(Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
b.What is Komiko's after-tax rate of return on her investment in part (a)?(Do not round intermediate calculations. Round your percentage 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?(Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
d.What is Komiko's after-tax rate of return on her investment in part (c)?(Do not round intermediate calculations. Round your percentage answer to 2 decimal places.)
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