Question
Anna bought 100 shares of Red Rocks Corp.s stock at $50 per share on February 1, 2020 and sold them for $70 on February 5,
Anna bought 100 shares of Red Rocks Corp.s stock at $50 per share
on February 1, 2020 and sold them for $70 on February 5, 2021.
Red Rocks Corp. has not paid any dividends until 2021. The FIRST dividend was announced on 12/7/2020.
The dividend payment schedule is listed in the table below.
Dividend Period | Dividend per share ($) | Announcement Date | Record Date | Payable Date | |
FY2021 Q1 | 0.5 | December 7, 2020 | February 8, 2021 | March 11, 2021 | |
(1) Annas ordinary income tax rate is 28%. The capital gain and dividend are taxed at the same rate of 15%.
How much total return in dollar amount would Anna receive from the transaction?
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