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The expected pretax return on three stocks is divided between dividends and capital gains in the following way: Required:a . If each stock is priced
The expected pretax return on three stocks is divided between
dividends and capital gains in the following way:Required:aIf each stock is priced at $ what
are the expected net percentage returns on each stock to i a
pension fund that does not pay taxes, ii a corporation paying tax
at the effective tax rate on dividends received by
corporations is and iii an individual with an effective
tax rate of on dividends and on capital gains?bSuppose that investors pay tax on
dividends and tax on capital gains. If stocks are priced to
yield an aftertax return of what would A B and C each sell
for? Assume the expected dividend is a level perpetuity.I am having a problem calculation Corporate and individual for A
and C
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