Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

There are 3 parts to this question - you purchase 100 shares of KSU Corporation for $35.29 per share. Over the next 12 months assume

There are 3 parts to this question - you purchase 100 shares of KSU Corporation for $35.29 per share. Over the next 12 months assume the price goes up to $ 43.26 per share, and you receive a qualified dividend of $0.52 per share.

What would be your total return on your KSU Corporation investment? 24.05

Assuming you continue to hold the stock, calculate your after-tax return. 23.83

What is your realized after tax rate of return if you sell the stock?

I calculated the first two answers, but need the last - confused on the calculation - please help...

( In both cases assume you are in the 25 percent federal marginal tax bracket and 15 percent long-term capital gains and qualified dividends tax bracket and there is no state income tax on investment income.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance With Monte Carlo

Authors: Ronald W. Shonkwiler

2013th Edition

146148510X, 978-1461485100

More Books

Students also viewed these Finance questions

Question

What is Centrifugation?

Answered: 1 week ago

Question

To find integral of ?a 2 - x 2

Answered: 1 week ago

Question

To find integral of e 3x sin4x

Answered: 1 week ago

Question

To find the integral of 3x/(x - 1)(x - 2)(x - 3)

Answered: 1 week ago

Question

What are Fatty acids?

Answered: 1 week ago