An investor buys stock for $5,000 at the beginning of the year.She earns dividends of $200 during the course of the year.At the end of the year, the stock is worth $5,150.The tax rate on dividends and capital gains is 15 percent.The inflation rate is 2 percent.
a.Calculate the investor's after-tax real return if she does not sell the stock at the end of the year.
b.Calculate the investor's after-tax real return if she sells the stock at the end of the year.

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The Answer of An investor buys stock for $5,000 at the beginning of the year.She earns dividends of $200 during the course of the year.At the end of the year, the stock is worth $5,150.The tax rate on dividends and capital gains is 15 percent.The inflation rate is 2 percent.
a.Calculate the investor's after-tax real return if she does not sell the stock at the end of the year.
b.Calculate the investor's after-tax real return if she sells the stock at the end of the year.

An Investor Buys Stock for $5,000 at the Beginning of the Year.She