Question
With your newfound expertise you purchase 100 shares of KSU Corporation for $35.29 per share. Over the next 12 months assume the price goes up
With your newfound expertise 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, what is the after-tax return. (this is where I am having trouble... please detail this answer... thanks)
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.
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