You bought Eagles, Inc. for $3.67 per share 20 years ago. You never sold any shares. Today, it has 100mm shares authorized, 40mm 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%. 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?
You bought Eagles, Inc. for $3.67 per share 20 years ago. You never sold any shares. Today, it has 100mm shares authorized, 40mm 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%. 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?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You bought Eagles, Inc. for $3.67 per share 20 years ago. You never sold any shares. Today, it has 100mm shares authorized, 40mm 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%.
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What is the CAGR on your investment? |
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Assuming you never sold any shares, what taxes have you paid? |
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You originally bought 1000 shares and sell them all today, what are your net proceeds after tax? |
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