What if: Assume Bill decides to purchase Intel stock for $50,000 and hold the shares for...

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What if: Assume Bill decides to purchase Intel stock for $50,000 and hold the shares for five years. If the Intel stock grows at a constant 8 percent before-tax rate and does not pay any dividends, how much cash will Bill accumulate after taxes after five years, assuming a long-term capital gains tax rate of 20 percent? , computed as follows: Answer: Description (1) Proceeds from sale (2) Cost basis Amount Explanation (3) Gain on realized on sale (4) Tax rate on gain (5) Tax on gain After-tax cash after 5 years After-tax rate of return after 5 years What annual after-tax rate of return will Bill earn on the money invested? Answer: What if: What would be the after-tax rate of return if Bill held the stock for 18 years? Answer: Description , computed as follows: Amount Explanation (1) Proceeds from sale (2) Cost basis (3) Gain on realized on sale (4) Tax rate on gain (5) Tax on gain After-tax cash after 5 years After-tax rate of return after 18 years 12 What if: Assume Bill decides to purchase Intel stock for $50,000 and hold the shares for five years. If the Intel stock grows at a constant 8 percent before-tax rate and does not pay any dividends, how much cash will Bill accumulate after taxes after five years, assuming a long-term capital gains tax rate of 20 percent? , computed as follows: Answer: Description (1) Proceeds from sale (2) Cost basis Amount Explanation (3) Gain on realized on sale (4) Tax rate on gain (5) Tax on gain After-tax cash after 5 years After-tax rate of return after 5 years What annual after-tax rate of return will Bill earn on the money invested? Answer: What if: What would be the after-tax rate of return if Bill held the stock for 18 years? Answer: Description , computed as follows: Amount Explanation (1) Proceeds from sale (2) Cost basis (3) Gain on realized on sale (4) Tax rate on gain (5) Tax on gain After-tax cash after 5 years After-tax rate of return after 18 years 12