NO.PZ2024101802000015
问题如下：
An investor plans to invest GBP25,000 in an investment opportunity expected to generate 6% in taxable income per year over the next 10 years. The appropriate tax rate is 40%, and taxes on the returns are paid annually. Demonstrate that the tax drag of this investment is greater than the tax rate
选项：
解释：
FV = GBP25, 000 × [1 + 0.06 × (1 − 0.40)]^10=GBP35,607
Comparing the result with the no-tax alternative, the investment would have grown to:
FV = GBP25, 000 × (1 + 0.06)^10=GBP44,771
The additional growth due to the absence of taxes, GBP44,771 – GBP35,607, is GBP9,164. The tax drag is 9164/(44771-25000)=46%
which is greater than the 40% tax rate. The negative impact of taxes on the investment’s net returns reduced the overall performance and growth of an investment by 46%
After-tax retun rate:[1+0.06*（1-0.4）]^10-1=0.4243
Pre-tax return rate:1.06^10-1=0.7908
Tax drag:(0.7908-0.4243)/0.7908=46.35%, which is greater than 40%