Assignment:
A taxpayer can invest $5,000 in a common stock that pays no dividends but appreciates at a rate of 8%.
The taxpayer’s tax rate is 30%. He plans to sell the stock after 30 years.
a. Find the after-tax accumulation and the annualized after-tax rate of return for this investment.
b. What would have been the annualized after-tax rate of return on the stock if there were a special tax rate of 20% on capital gains?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.