1.

a. Suppose you own 100 shares of a regular corporation. The corporation earns USD 5.00 per share before taxes. Once the corporation has paid any corporate taxes that are due, it will distribute the rest of its earnings to its stockholders in the form of a dividend. If the corporate tax rate is 21 percent and your personal tax rate on (both dividend and non-dividend) income is 30 percent,then how much money is left for you after all taxes have been paid?

b. What would be the amount of money left over to the owners if the above company were an LLC instead of a regular corporation?

c. Suppose you buy a share of stock for USD 50. Over the next year you collect a USD 2 dividend and sell the stock for USD 55. What is your dividend yield, in percent?

d.Suppose you buy a share of stock for USD 50. Over the next year you collect a USD 2 dividend and sell the stock for USD 55. What is your capital gains yield, in percent?