FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

An investor buys a stock today for $26, receives a dividend of $2 at the end of the year and then sells the stock for

An investor buys a stock today for $26, receives a dividend of $2 at the end of the year and then sells the stock for $30. If the dividend is taxed at 37% and the capital gain at 20%, what is his return after tax?

Multiple Choice

  • 9.23%

  • 17.15%

  • 23.08%

  • 31.15%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

Let Y1 and Y2 be independent unit normal random variables and for some constant w set X(t) = Y1 cos wt + Y2 sin wt, Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★
Cost allocation downward demand spiral Deli One operates a chain of 10 hospitals in the Los Angeles area. Its central food-catering facility, Deliman, prepares and delivers meals to the hospitals. It...

Answered: 1 week ago

Question

★★★★★
Helen Bowers, owner of Helen's Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2019 and 2020: May...

Answered: 1 week ago

Question

★★★★★
If mc 0 0 4 - 1 . jpg [ 5 , - 3 ] and mc 0 0 4 - 2 . jpg , find mc 0 0 4 - 3 . jpg . Select one: a . 2 3 b . [ 4 , - 7 ] c . [ 0 , - 2 3 ] d . 5 2 9

Answered: 1 week ago

Question

★★★★★
This is a "critical thinking" Partnership project. Perform some Internet research and read about the Diffusion of Innovation (Rogers, 1962) and the 5 types of Human Adopter Groups that must be...

Answered: 1 week ago

Question

★★★★★
Based on the WCDM screen, how can we compare Italy and Japan in terms of overall default risk on their debt? Japan has over 3x the total debt of Italy, and a worse credit rating, so its credit...

Answered: 1 week ago

Question

★★★★★
Briefly explain Feeding America (an organization) Operational Model Based on the various operational models (e.g., entrepreneurial support model, market intermediary model, market linkage model,...

Answered: 1 week ago

Question

★★★★★
Since the proposed medication is injectable are you planning on premediating your patients to avoid any potential injection related reactions?

Answered: 1 week ago

Question

★★★★★
2 . As we move forward with the workshop, we will discuss how important it is to communicate to your audience ( as Florence Nightingale did ) . What does the above graph / chart communicate? What are...

Answered: 1 week ago

Previous Question Next Question