Question
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.)
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