Suppose you have $5,000 of free cash and would like to begin compiling an investment portfolio. One of the fund's you are considering, Fund A, is currently priced at $180 per share, is expected to reach a price of $198 per share in the next year, and does not pay out any dividends. Another Fund you are considering, Fund B, is also priced at $180 per share and will pay a dividend of $12. Assume capital gains are taxed at 20% and dividends are taxed at 40%.

1. If you were to purchase Fund A, what would your before-tax rate of return be? What would your after-tax rate of return be?
2. Knowing that Fund B is currently priced at $180 per share and will pay out a dividend of $12 next year, what would Fund B need to be priced at next year per share in order to have the same after-tax rate of return as Fund A?
3. If you had $5,000 of free cash for investments, which fund would you prefer and why?
4. Would your answer change at all if you had $10,000,000 of free cash and you're trying to use your investment profits to fund your retirement income?