Find the real return, nominal after-tax return, and real after-tax return for each of the following...

Find the real return, nominal after-tax return, and real after-tax return for each of the following stocks:

Stock	Nominal Return	Inflation	Tax Rate
X	13.5%	5%	15%
Y	8.7%	4.7%	25%
Z	5.2%	2.5%	28%

Expert Solution

jeff jeffy answered 2 years ago

PLEASE SHOW CALCULATIONS 1. Find the real return, nominal after-tax return, and real after-tax return for...

PLEASE SHOW CALCULATIONS 1. Find the real return, nominal after-tax return, and real after-tax return for each of the following stocks: Stock Nominal Return Inflation Tax Rate X 13.5% 5% 15% Y 8.7% 4.7% 25% Z 5.2% 2.5% 28% 2.) Compute the holding period returns for each security below: Security Price Today Price One Year Ago Dividends Received Interest Received RR $20.05 $18.67 $0.50 WC $33.42 $45.79 $1.10 AC $1,015.38 $991.78 $100.00

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Define the following terms with examples (a) Absolute return (b) Nominal rate of return (c) Real...

Define the following terms with examples (a) Absolute return (b) Nominal rate of return (c) Real rate of return

Given the following information: Nominal Initial Cost = $68,000; Nominal Before-tax Net Return = 11,000

Given the following information: Nominal Initial Cost = $68,000; Nominal Before-tax Net Return = 11,000 Marginal Tax Rate = 20%; Required rate of return = 12% Real Terminal Value = $60,000; Investment Life = 3 years Inflation Rate = 4%; Risk Premium = 2% Suppose that IRS will allow the investor to depreciate the investment using straight-line over 12 years. (iv) What is the nominal after-tax terminal value? a. $60,120 b. $64,600 c. $64,193 d. $64,005 (v) What is the present value of the nominal after-tax terminal value? a. $41,446 b. $44,534 c. $46,685 d. $44,124...

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