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After reading this chapter, it isn't surprising that you're becoming an investment wizard. With your newfound expertise, you purchase 1 0 0 shares of KSU

After reading this chapter, it isn't surprising that you're becoming an investment wizard. With your newfound expertise, you purchase 100 shares of KSU Corporation for $57.84 per share. Assume the price goes up to $ 72.06 per share over the next 12 months and you receive a qualified dividend of $0.45 per share. What would be your total return on your KSU Corporation investment? Assuming you continue to hold the stock, calculate your after-tax return. How is your realized after-tax return different if you sell the stock? In both cases assume you are in the 25 percent federal marginal tax bracket and 15 percent long-term capital gains and qualified dividends tax bracket and there is no state income tax on investment income.Question content area bottom
Part 1Your total rate of return on your KSU Corporation investment is enter your response here%.(Round to two decimal places.)
Part 2Assuming you continue to hold the stock, your after-tax rate of return is enter your response here%.(Round to two decimal places.)Part 3Your realized after-tax rate of return if you sell the stock is enter your response here%.(Round to two decimal places.)

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