Though, the question is coming from an income tax accounting course...the question appears to be geared towards finance. I'm having difficulty trying to figure out the equation the achieve the answer to the following: What if: Assume Bill decides to purchase Intel stock for $50,000 and holds the shares for 5 years. If the Intel stock grows at a constant 8% before-tax rate & does not pay any dividends, how much cash will Bill accumulate after 5 years, assuming a long-term capital gains tax rate of 20%?

Though, the question is coming from an income tax accounting course...the question appears to be geared towards finance. I'm having difficulty trying to figure out the equation the achieve the answer to the following: What if: Assume Bill decides to purchase Intel stock for $50,000 and holds the shares for 5 years. If the Intel stock grows at a constant 8% before-tax rate & does not pay any dividends, how much cash will Bill accumulate after 5 years, assuming a long-term capital gains tax rate of 20%?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter13: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 13DQ

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