Savings account in a commercial bank-expected annual yield = 3%.
High-growth common stocks-expected annual increase in market value = 10%; expected dividend yield = 0.
That looks like an amendment/correction to your previous question, and may explain the unrealistic 10% yield of a savings account that you mentioned.
What exactly is your question?
Calculate the after tax yields on the foregoing investments; assuming the Brittens have a 28% marginal tax rate (based on Public Law 108-27, The Jobs and Growth Tax Relief Reconciliation Act of 2003).
Municipal bonds-expected annual yield = 5%.
High Growth common stocks-expected annual increase in market value = 10%; expected dividend yield = 0.
Thank you!
for helping me with other questions. car