$30 per share, holds the shares for 5 years, and sells them for $65. (Hint: Find the holding period return and divide the number of years in the holding period.) The annualized rate of return is ☐ %. (Round to two decimal places.) What is his after-tax rate of return if he is in the 25 percent marginal tax bracket? The tax due is $. (Round to the nearesircent.) The after-tax rate of return is %. (Round to two decimal places.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 63P
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$30 per share, holds the shares for 5 years, and sells them for $65. (Hint: Find the holding period return and divide by
the number of years in the holding period.)
The annualized rate of return is ☐ %. (Round to two decimal places.)
What is his after-tax rate of return if he is in the 25 percent marginal tax bracket?
The tax due is $
(Round to the nearescent.)
The after-tax rate of return is ☐ %. (Round to two decimal places.)
Transcribed Image Text:$30 per share, holds the shares for 5 years, and sells them for $65. (Hint: Find the holding period return and divide by the number of years in the holding period.) The annualized rate of return is ☐ %. (Round to two decimal places.) What is his after-tax rate of return if he is in the 25 percent marginal tax bracket? The tax due is $ (Round to the nearescent.) The after-tax rate of return is ☐ %. (Round to two decimal places.)
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