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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
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 Event or $ Dividend Market Price buy 0.6 3 for 1 15-Mar 30-May 15-Jun 0.4 15-Sep 0.4 15-Dec 0.4 31-Dec seil Tax Rates are as follows: 100 102 100 35 36 34 37 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. What is the unadjusted before-tax holding period rate of return? 2. What is the time-weighted before-tax rate of return? 3. What is the unadjusted after-tax holding period rate of return? 4. 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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Step: 1
Heres the spreadsheet with the necessary calculations DateTransactionSharesPriceDividendMarket Value 1Jan2022Buy1000100100000 15Mar2022Dividend060 Sel...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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