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Your parents bought you 1,000 shares of Disney stock on the day you were born (in 1990) for $8.73 per share. You held them until
Your parents bought you 1,000 shares of Disney stock on the day you were born (in 1990) for $8.73 per share. You held them until you were in college but your dad lost his job due to the Great Recession. You still had to pay your tuition bill so you sold the shares for $17.45 per share (in 2008). The government taxed you 15% of your (nominal) capital gain from the sale. hen purchased (1 990) hen sold (2008) Convert the value of the stock when it was purchased into its real value in 2008 $s using the CPI values in the table above. Your real capital gain is (amount you made selling the stock) (amount you paid convert to 2008 $3). The tax rate on your investment income is (taxes paid)/(rea| capital gain). What tax rate did you pay on this income? (Give your answer as a decimal, e.g. 15% is 0.15.)
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