Komiko Tanaka invests $14,500 in LymaBean, Incorporated. 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. 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?
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Komiko Tanaka invests $14,500 in LymaBean, Incorporated. LymaBean does not pay any dividends. Komiko projects that her investment will generate a 10 percent before-tax
- 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?
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- Marlo and Merlins son, Alex, needs 20,000 to start a business. They have 30,000 in securities that they can use to give him the capital he needs. Pertinent information regarding the securities is given below: Marlo and Merlin are in the 28 percent marginal tax rate bracket; Alex is in the 15 percent marginal tax rate bracket. Neither Marlo, Merlin, nor Alex has any other capital asset transactions during the year. Alexs basis in any of the securities gifted to him will be the lesser of his parents basis or the fair market value of the security. Discuss the tax effects of alternate methods of transferring 20,000 to Alex, and devise an optimal plan for making the transfer.Komiko Tanaka invests $14,500 in LymaBean, Incorporated. 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. How much cash will Komiko retain, after taxes, if she holds the investment for five years and then she sells it when the long-term capital gains rate is 15 percent? What is Komiko's after-tax rate of return on her investment in part (a)?Komiko Tanaka invests $14,500 in LymaBean, Incorporated. 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. C. How much cash will Komiko retain, after taxes, if she holds the investment for five years and then sells when the long-term capital gains rate is 25 percent? D. What is Komiko's after-tax rate of return on her investment in part (c)?
- Komiko Tanaka invests $13,000 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 five years and then she sells it when the long-term capital gains rate is 15 percent?Komiko Tanaka invests $18,000 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 intermediate calculations. Round your final answer to the nearest whole dollar amount.) b. What is Komiko’s after-tax rate of return on her investment in part (a)? (Do not round intermediate calculations. Round your percentage answer to 2 decimal places.) 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 intermediate calculations. Round your final answer to the nearest whole dollar amount.) d. What is Komiko’s after-tax rate of…Komiko Tanaka invests $18,000 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. 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 intermediate calculations. Round your final answer to the nearest whole dollar amount.) What is Komiko’s after-tax rate of return on her investment in part (c)? (Do not round intermediate calculations. Round your percentage answer to 2 decimal places.) 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 intermediate calculations. Round your final answer to the nearest whole dollar amount.) f. What is Komiko’s after-tax rate of return on her…
- Renee has two options:(1) She is 25 and her marginal tax rate is 32%. She is planning to invest $5,000 per year into her RRSP until she retires at 65. The money will be invested in a Canadian ETF that is expected to return 10% per year. Assume that she will withdraw her RRSP in one lump sum at 65 and that the marginal tax rate at 65 is 50%. (2) OR Instead of (1), she would use the $5,000 per year to service an interest-only investment loan to create her self-created tax shelter. The rate of interest on the loan is 6%. She will invest the money in the same Canadian ETF that earns 10%. The expected rate of return of 10% on the mutual fund is all capital gains and no dividends. Required :(a) How much money will she have after taxes if she invests in the RRSP? (b) How much money will she have after taxes if she invests in the tax shelter? (c) In (2), if the expected rate of return on the mutual fund is only 6% , how much money after taxes will she have at…Janet is comparing two tax-efficient investments options. Janet is 25 and her marginal tax rate is 32%. She is planning to invest $5,000 per year into her RRSP until she retires at 65. The money will be invested in a Canadian ETF that is expected to return 10% per year. Assume that she will withdraw her RRSP in one lump sum at 65 and that the marginal tax rate at 65 is 50%. Instead of making the annual RRSP contribution in (A), she would use the $5,000 per year to service an interest-only investment loan to create her self-created tax shelter. The rate of interest on the loan is 6%. She will invest the money in the same Canadian ETF that earns 10%. The expected rate of return of 10% on the mutual fund is all capital gains and no dividends. Required : How much money will she have after taxes if she invests in the RRSP? (6 marks) How much money will she have after taxes if she invests in the tax shelter? (6 marks) In (B), if the…Fatima is about to get a raise at her job and she will go from being paid $37,000 a year to being paid $38891 a year. Since she is single, this will change her tax bracket, and she has heard rumors that it is financially inadvisable to take a raise that will barely change your tax bracket. Does Fatima make more money if she takes the raise? If so, how much more will Fatima make a year if she takes the raise, once federal taxes have been deducted from both incomes? If she will make the same amount or lose money, enter 0.
- Ophria invested well and plans to retire now because she has $2,300,000 in hre tax-deferred IRA account. How long will she be able to withdraw $125,000 per year (beginning one year from now) if her investments earn at a rate of 4% per year? solve using factors and NPER functions, without Excel.Laura wants to buy a delivery truck. The truck costs $124,000 , and will allow her to increase her after tax profits by $18,000 per year for the next 10 years. She will borrow 92% of the cost of the truck for 10 years, at an interest rate of 6%. Laura’s unlevered cost of capital is 12% and her tax rate is 35%. The loan includes a $2,000 application fee. What is the NPV of buying the truck on these terms? Please use the APV method.Laura wants to buy a delivery truck. The truck costs $142,000 , and will allow her to increase her after tax profits by $33,000 per year for the next 10 years. She will borrow 100% of the cost of the truck for 10 years, at an interest rate of 6%. Laura’s unlevered cost of capital is 15% and her tax rate is 32%. The loan includes a $1,000 application fee. What is the NPV of buying the truck on these terms?
