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1. You buy a stock for $14 per share and sell it for $18 after you collect a $1.00 per share dividend. Your pre-tax capital

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1. You buy a stock for $14 per share and sell it for $18 after you collect a $1.00 per share dividend. Your pre-tax capital gain yield is yield is6 point) and your pre-tax dividend A) 28.57%; 7.14% B) 35.71%; 0.00% C) 21.42%;5.55% D) 22.22%, 5.55% E) 27.78%,6.32% 2. You buy a stock for $30 per share and sell it for $33 after holding it for slightly over a year and collecting a SO.75 per share dividend. Your ordinary income tax rate is 28 point percent and your capital gains tax rate is 20 percent. Your after-tax rate of return is? (6 3. Suppose absolute purchasing power parity holds. The exchange rate between British pounds and US dollars is British pound 0.75 per dollar. If a stereo costs $5000 in the United States, how much should it cost in Britain? (6 point) A) 2,620 British pound B) 3,497 British pound C) 3,750 British pound D) 4,995 British pound E) 7,136 British pound

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