1. Business
  2. Accounting
  3. komiko tanaka invests 13500 in lymabean inc lymabean does not...

Question: komiko tanaka invests 13500 in lymabean inc lymabean does not...

Question details

Komiko Tanaka invests $13,500 in LymaBean, Inc. LymaBean does not pay any dividends. Komiko projects that her investment will generate a 10 percent before-tax rate of return. She plans to invest for the long term. a. How much cash will Komiko retain, after-taxes, if she holds the investment for 5 years and then she sells it when the long-term capital gains rate is 15 percent? (Do not round your intermediate calculations. Round your final answer to the nearest whole dollar amount.) Cash retained b. What is Komikos after-tax rate of return on her investment in part (a)? (Do not round your intermediate calculations. Round your percentage answer to 2 decimal places.) After-tax rate of return percent c. How much cash will Komiko retain, after-taxes, if she holds the investment for 5 years and then sells when the long-term capital gains rate is 25 percent? (Do not round your intermediate calculations. Round your final answer to the nearest whole dollar amount.) Cash retainedd. What is Komikos after-tax rate of return on her investment in part (c)? (Do not round your intermediate calculations. Round your percentage answer to 2 decimal places.) After-tax rate of return percent e. How much cash will Komiko retain, after taxes, if she holds the investment for 15 years and then she sells when the long-term capital gains rate is 15 percent? (Do not round your intermediate calculations. Round your final answer to the nearest whole dollar amount.) Cash retained f. What is Komikos after-tax rate of return on her investment in part (e)? (Do not round your intermediate calculations. Round your percentage answer to 2 decimal places.) After-tax rate of return percent

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution