We're using cookies, but you can turn them off in your browser settings. Otherwise, you are agreeing to our use of cookies. Learn more in our Privacy Policy

Bridge over ocean
1 July 1992 Financial Analysts Journal Volume 48, Issue 4

After-Tax Equity Returns for Non-Qualified Nuclear Decommissioning Trusts

  1. Doug S Rogers, CFA

After-tax performance data for non-qualified nuclear decommissioning trusts are not readily available. Applying a portfolio's turnover rate, coupled with the appropriate tax rates, to pretax returns does not produce valid after-tax return data. The exemption of 70% of dividend income from taxes further complicates the computation. A model that includes a utility's level of taxation and time horizon to decommissioning demonstrates how after-tax returns can be computed to permit meaningful comparisons of equity managers with diverse styles.

Read the Complete Article in Financial Analysts Journal Financial Analysts Journal CFA Institute Member Content