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With your expertise in investments, you purchase 100 shares of Microsoft for $37 per share. Over the next 12 months assume the price goes up
With your expertise in investments, you purchase 100 shares of Microsoft for $37 per share. Over the next 12 months assume the price goes up to $45 per share, and you receive a dividend of $0.50 per share. What would be your total return on your Microsoft 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% federal marginal tax bracket and there is no state income tax on investment income.
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