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Assume that you purchased shares of High Flying mutual fund at a net asset value of $12.50 per share. During the year, you received dividend
Assume that you purchased shares of High Flying mutual fund at a net asset value of $12.50 per share. During the year, you received dividend income distributions of $0.78 per share and capital gains distributions of $1.67 per share. At the end of the year, the shares had a net asset value of $13.87 per share. What was your after-tax rate of return on this investment? (Assume a 10% tax rate for both income and realized capital gain distribution)
A. | 29.43% | |
B. | 30.56% | |
C. | 31.19% | |
D. | 32.44% | |
E. | 28.60% |
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