What is the value of a stock that has a growth rate of 5%, discount rate of 12% that will be held for 5 years and then sold with current dividend paying $1. What is the capital gain before tax on 100 shares bought at $7.30 per share and sold 7 years later at $29.53? What is the after tax gain based on capital gains tax of 10%? What was the pre-tax return on this investment? What is meant by markets being efficient in terms of price