Question
Suppose that a person invested 1000 euros into stocks on June 1, 2018 and sold these stocks for 1300 euros on June 1, 2020. Suppose
Suppose that a person invested 1000 euros into stocks on June 1, 2018 and sold these stocks for 1300 euros on June 1, 2020. Suppose that there were no commission fees applied on these trades. During the holding period, this person also received 50 euros of dividends from these stocks. The dividends were paid out on June 1, 2020.
Suppose that the realized capital gains are taxed at 20% and the dividends are tax exempt in the country of residence of this person. Find the nominal after-tax rate of return for this person from the investment described.
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