Assume the following three investments have the same amount of risk. Further, assume a marginal tax...

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Assume the following three investments have the same amount of risk. Further, assume a marginal tax rate of 32% and a long-term capital gains rate of 15%. Calculate the after-tax rate of return for each investment, and then enter in without a percentage sign (e.g., 7.75% should be entered as 7.75). Investment A: Stock that is expected to earn a pre-tax return of 9% and the holding period will be greater than a year. QUESTION 12 Assume the following three investments have the same amount of risk. Further, assume a marginal tax rate of 32% and a long-term capital gains rate of 15%. Calculate the after-tax rate of return for each investment, and then enter in without a percentage sign (e.g., 7.75% should be entered as 7.75). Investment B: Corporate bond that pays 11% interest annually. QUESTION 13 Assume the following three investments have the same amount of risk. Further, assume a marginal tax rate of 32% and a long-term capital gains rate of 15%. Calculate the after-tax rate of return for each investment, and then enter in without a percentage sign (e.g., 7.75% should be entered as 7.75). Investment C: Tax-exempt municipal bond that pays 7% interest annually. Assume the following three investments have the same amount of risk. Further, assume a marginal tax rate of 32% and a long-term capital gains rate of 15%. Calculate the after-tax rate of return for each investment, and then enter in without a percentage sign (e.g., 7.75% should be entered as 7.75). Investment A: Stock that is expected to earn a pre-tax return of 9% and the holding period will be greater than a year. QUESTION 12 Assume the following three investments have the same amount of risk. Further, assume a marginal tax rate of 32% and a long-term capital gains rate of 15%. Calculate the after-tax rate of return for each investment, and then enter in without a percentage sign (e.g., 7.75% should be entered as 7.75). Investment B: Corporate bond that pays 11% interest annually. QUESTION 13 Assume the following three investments have the same amount of risk. Further, assume a marginal tax rate of 32% and a long-term capital gains rate of 15%. Calculate the after-tax rate of return for each investment, and then enter in without a percentage sign (e.g., 7.75% should be entered as 7.75). Investment C: Tax-exempt municipal bond that pays 7% interest annually.

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