Net of capital gains taxes,the amount the total value of d'Anconia Copper shares increase is closest to:
A)$5.5 million
B)$6.5 million
C)$7.0 million
D)$10.0 million

Name: Net of capital gains taxes,the amount the total value of d'Anconia Copper shares increase is closest to: A)$5.5 million B)$6.5 million C)$7.0 million D)$10.0 million
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Question

Quizplus · Accepted Answer

A)Net amount = investment × interest × (1 - corporate tax rate)(1 - cap gains rate)
= $200 million × 5% × (1 - 35%)(1 - 15%)= 5.525 million

Net of Capital Gains Taxes,the Amount the Total Value of D'Anconia