You currently hold 150 shares of Bavarian Sausage, Inc. You purchased the shares three months ago at $26.50, and a share is currently trading at $30. The share will pay a $3.75 dividend in a few days and the ex-dividend day is tomorrow. Your personal tax rate on dividend income is 25% and the capital gains tax is 15%.

a. If you were to sell your shares today, what would be the after-tax return on your investment?

b. If you decide to sell the shares after you have received the dividend and the dividend is fully reflected in the ex-dividend price, what is the total after-tax dollar return on theinvestment?