Over the last year, your holding period return on your investments has been 6.60%. Over the same period, inflation has been 7.60%, while your tax (on capital gains, interest, and dividends) was at a rate of 33.00%. What was your real after-tax return, using the approximate adjustment for inflation? -1.00% -0.67% -5.42% -3.18%

Over the last year, your holding period return on your investments has been 6.60%. Over the same period, inflation has been 7.60%, while your tax (on capital gains, interest, and dividends) was at a rate of 33.00%. What was your real after-tax return, using the approximate adjustment for inflation? -1.00% -0.67% -5.42% -3.18%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 28P

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