The expected pretax return on three stocks is divided between dividends and capital gains in the following way! Expected Expected Stock Dividend Capital Gain $10 50 Required: o. If each stock is priced at $195, what are the expected net percentage returns on each stock too) a pension fund that does not pay taxes, 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 10% on dividends and 5% on capital gains? b. Suppose that investors pay 40% tax on dividends and 10% tax on capital gains. If stocks are priced to yield an after-tax return of 10%, what would A, B, and Cleach sell for? Assume the expected dividend is a level perpetuity Complete this question by entering your answers in the tabs below. Reg A Reg B If each stock is priced at $195, what are the expected net percentage returns on each stock to (1) a pension fund that does not pay taxes, (ii) a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3%), and (i) an individual with an effective tax rate of 10% on dividends and 5% on capital gains? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Show less Stock Pension Investor Corporation Individual Che The expected pretax return on three stocks is divided between dividends and capital gains in the following way. Expected Expected Stock Dividend Capital Gain $10 10 Required: a. If each stock is priced at $195, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (l) 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 10% on dividends and 5% on capital gains? b. Suppose that investors pay 40% tax on dividends and 10% tax on capital gains. If stocks are priced to yield an after-tax return of 10%. what would A, B, and C each sell for? Assume the expected dividend is a level perpetuity. Complete this question by entering your answers in the tabs below. Req A Rey B Suppose that investors pay 40% tax on dividends and 10% tax on capital gains. If stocks are priced to vield an after-tax return of 10%, 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.) Stock Price