10. Taxes and Returns (LO1, CFA9) You purchased a stock at the end of last year at a price of $73.

At the end of this year, the stock pays a dividend of $1.20 and you sell the stock for $78. What is your return for the year? Now suppose that dividends are taxed at 15 percent and long-term capital gains (over 11 months) are taxed at 30 percent. What is your aftertax return for the year?