Problem:

You bought a stock last year that grows by 10% every year. You decide that you will either hold onto that stock for another year or sell it, or you will sell it now and buy a different stock. If you are taxed 40% on half (50%) of the profit you make,

Requirement:

Question 1: What is the minimum rate of return you need from the second stock to make the switch? Please justify your answer and also provide all calculations and formulas