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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 shares of KSU Corporation for $ per share. Assume the price goes up to $ per share over the next months and you receive a qualified dividend of $ per share. What would be your total return on your KSU Corporation investment? Assuming you continue to hold the stock, calculate your aftertax return. How is your realized aftertax return different if you sell the stock? In both cases assume you are in the percent federal marginal tax bracket and percent longterm capital gains and qualified dividends tax bracket and there is no state income tax on investment income.Question content area bottom
Part Your total rate of return on your KSU Corporation investment is enter your response hereRound to two decimal places.
Part Assuming you continue to hold the stock, your aftertax rate of return is enter your response hereRound to two decimal places.Part Your realized aftertax rate of return if you sell the stock is enter your response hereRound to two decimal places.
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