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please show all work! 100 points As a financial analyst at Deutsche Bank, you are analyzing the after tax retums for your client. Suppose your
please show all work!
100 points As a financial analyst at Deutsche Bank, you are analyzing the after tax retums for your client. Suppose your client bought a share of stock of AMD at $60, a share of stock Oracle at $70. and a share of IBM at $80. A year later, after your client received a $3 dividend from AMD, $4 dividend from Oracle, and $5 from IBM, he sold the stock AMD at $65 per share sold Oracle at $75, and sold IBM at 80. What are the expected after tax returns for your client if your client is (a) a church investment fund (tax-exempt status) (Sample answer: 10.55%) (b) a corporation paying tax at 21% (assume that corporations may exclude 70% of dividends received from domestic corporations in the computation of their taxable income) (Sample answer 10.55%) (c) an individual paying tax at 21% on capital gains and dividend income at 35% (Sample answer 10.65%) (d) a security dealer paying tax at 28% on both dividend income and capital gains? (Sample answer 10.65%) Step by Step Solution
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