Which investment likely earned a greater after-tax return

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1. Do after-tax rates of return for investments in either interest or dividend paying securities increase with the length of the investment? Why or why not?

2. Cameron purchases stock in Corporation X and in Corporation Y. Neither corporation pays dividends. The stocks both earn an identical before-tax rate of return. Cameron sells stock in Corporation X after three years and he sells the stock in Corporation Y after five years. Which investment likely earned a greater after-tax return? Why?

Reference no: EM13905545

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