Question
Hi there. Please assist with the following question Jill Clark invested $24,850 in the bonds of IndustrialAromatics, Inc. She held them for 13months, at the
Hi there. Please assist with the following question
Jill Clark invested $24,850 in the bonds of IndustrialAromatics, Inc. She held them for 13months, at the end of which she sold them for $26,899. During the period of ownership she received $1,843 interest. Calculate the pretax andafter-tax HPR onJill's investment. Assume that she is in the 32% ordinary tax bracket(federal and statecombined) and pays a 15% capital gains rate on dividends and on capital gains for holding periods longer than 12 months.
The pretax HPR is ??? %. (Round to two decimalplaces.)
Theafter-tax HPR is ??? %. (Round to two decimalplaces.)
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
