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You purchased a stock at the end of last year at a price of $ 8 8 . At the end of this year, the

You purchased a stock at the end of last year at a price of $88. At the end of this year, the stock pays a
dividend of $2.50 and you sell the stock for $94. What is your return for the year? Now suppose that
dividends are taxed at 15 percent and long-term capital gains (over 11 months) are taxed at 30 percent.
What is your aftertax return for the year? (Do not round intermediate calculations. Enter your answers as
a percent rounded to 2 decimal places.)
Answer is complete but not entirely correct.
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