Brief Exercise NO: 23

Cameron purchases stock in Corporation X and in Corporation Y.  Neither corporation pays dividends.  The stocks both earn an identical before-tax rate

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?

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