Finance

posted by Vicky

If an instrument has a 10.7% Nominal Return, the inflation rate is 3.1%, and your tax rate is 28%, what’s your approximate “Real After-Tax Return?”
a. 4.6%
b. 7.6%
c. 5.8%
d. none of the above

Respond to this Question

First Name

Your Answer

Similar Questions

  1. Real reverse Nominal Returns

    You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end. What is the rate of return on your investment for these end-of-year stock prices?
  2. Math

    Real Reverse Nominal Returns You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end. What is the rate of return on your investment for these end-of-year stock prices?
  3. Math

    Real Versus Nominal Returns. The Costaguanan stock market provided a rate of return of 95 percent. The inflation rate in Costaguana during the year was 80 percent. In the United States, in contrast, the stock market return was only …
  4. Math

    Real Versus Nominal Returns. The Costaguanan stock market provided a rate of return of 95 percent. The inflation rate in Costaguana during the year was 80 percent. In the United States, in contrast, the stock market return was only …
  5. math problem

    Real Versus Nominal Returns. A foreign stock market provided a rate of return of 95 percent. The inflation rate in this country during the year was 80 percent. In the United States, in contrast, the stock market return was only 12 …
  6. Finance/Algebra

    Suppose you bought an 8% coupon bond one year ago for $1090.00. The bond sells for $1063.00 today. Assuming a $1000 face value, what was ur total dollar return over the past year?
  7. Finance

    Dr. Whitten has decided to purchase equipment that has a cost of $60,000 and will produce a pretax net cash inflow of $30,000 per year over its estimated useful life of six years. The equipment will have no salvage value and will be …
  8. finance

    Assume investors expect a 2.0% real rate of return over the next year. If inflation is expected to be 5.0%, what is the expected nominal rate dor one year US Treasury security?
  9. AP Macroeconomics

    3. You buy a certificate of deposit (CD) that pays a nominal rate of 12% annually. You have a tax rate of 25%, so if the interest on this CD is taxable (which it may not be) your after-tax nominal rate is (1 ñ 25%) • 12% = 9%. Since …
  10. Finance

    You want to have $2million in real dollars in an account when you retire in 43 years. The nominal return on your investment in 9.939% and the inflation rate is 3.2%. What is the real amount you must deposit each year to achieve this …

More Similar Questions