Problem $4-51($LO$.6,7)$

Julio sold his corporation to a competitor, Exeter LLC$,$ for $$100,000,000.$ Julio incorporated his business seven years ago by investing $$500,000$ plus his proprietary know$-$how. There have been no other corporate shareholders.

Compute Julio's after$-$tax cash flow from the sale, assuming he is in the $37\%$ tax bracket $(20\%$ long$-$term capital gain rate$)$ and has no

other property sales during the year. Assume the $3\mathrm{.}8$ percent Net Investment Income Tax applies.

Julio's after$-$tax cash flow from the sale is s