The expected pretax return on three stocks is divided between dividends and capital gains in the following way Expected Expected Stock Dividend Capital Gain A $0 $10 B 5 5 10 e Required: a. If each stock is priced at $120, what are the expected net percentage returns on each stock to a pension fund that does not pay taxes. (1) a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3%), and (ii) an individual with an effective tax rate of 15% on dividends and 10% on capital gains? b. Suppose that investors pay 50% tax on dividends and 20% tax on capital gains. If stocks are priced to yield an after-tax return of 8%, what would A, B, and each sell for? Assume the expected dividend is a level perpetuity Complete this question by entering your answers in the tabs below. Req A Reg B If each stock is priced at $120, what are the expected net percentage returns on each stock to (1) a pension fund that does not pay taxes, (W a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3%), and () an individual with an effective tax rate of 15% on dividends and 10% on capital gains? (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Show less Stock Pension Individual Investor Corporation A % % % % % % % % % B Complete this question by entering your answers in the tabs below. REGA Reg Suppose that investors pay 50% tax on dividends and 20% tax on capital gains. If stocks are priced to Vield an after tax return of 8%, what would A, B, and each sell for? Assume the expected dividend is a level perpetuity. (Do not round intermediate calculations. Round your answers to 2 decimal places.) ence Price Stock A B CRA