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 $ 44.26 per share, and you receive a qualified dividend of $0.52 per share.

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

Assuming you continue to hold the stock, calculate your after-tax return. How is your realized after-tax return different if you sell the stock?

( 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.)