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Project #2 Due: Monday The following information is provided to you about the performance of a particular stock investment that involved purchasing 1,000 shares of
Project #2 Due: Monday The following information is provided to you about the performance of a particular stock investment that involved purchasing 1,000 shares of the stock on Jan 1 and selling the stock at the end of the last period; Date 1-Jan 15-Mar 30-May 15-Jun 15-Sep 15-Dec 31-Dec Event or $ Dividend buy 0.6 3 for 1 0.4 0.4 0.4 sell Market Price 100 102 100 35 36 34 37 Tax Rates are as follows: The capital gains rate is 20% The investor's personal income tax rate on dividends is 15% Create a spreadsheet to answer the following questions: 1. 2. 3. 4. What is the unadjusted before-tax holding period rate of return? What is the time-weighted before-tax rate of return? What is the unadjusted after-tax holding period rate of return? What is the time-weighted after-tax rate of return? Final Step: Calculate the difference between Question #4 (time-weighted after-tax rate of return) and Question #3 (unadjusted after-tax holding period rate of return). Project #2 Due: Monday The following information is provided to you about the performance of a particular stock investment that involved purchasing 1,000 shares of the stock on Jan 1 and selling the stock at the end of the last period; Date 1-Jan 15-Mar 30-May 15-Jun 15-Sep 15-Dec 31-Dec Event or $ Dividend buy 0.6 3 for 1 0.4 0.4 0.4 sell Market Price 100 102 100 35 36 34 37 Tax Rates are as follows: The capital gains rate is 20% The investor's personal income tax rate on dividends is 15% Create a spreadsheet to answer the following questions: 1. 2. 3. 4. What is the unadjusted before-tax holding period rate of return? What is the time-weighted before-tax rate of return? What is the unadjusted after-tax holding period rate of return? What is the time-weighted after-tax rate of return? Final Step: Calculate the difference between Question #4 (time-weighted after-tax rate of return) and Question #3 (unadjusted after-tax holding period rate of return)
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