Question
You bought Eagles , Inc. for $10 per share 15 years ago. You never sold any shares. Today, it has 100mm shares authorized, 50mm shares
You bought Eagles, Inc. for $10 per share 15 years ago. You never sold any shares. Today, it has 100mm shares authorized, 50mm shares issued and 30mm in treasury shares. The market value of the equity today is $600mm. It has never paid dividends. Assume a tax rate of 25%. ( be specific)
What is the CAGR on your investment? |
Assuming you never sold any shares, what taxes have you paid? |
You originally bought 1000 shares and sell them all today, what are your net proceeds after tax? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the Compound Annual Growth Rate CAGR on your investment we can use the formula CAGR End...
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Financial Accounting A User Perspective
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
6th Canadian Edition
470676604, 978-0470676608
