Question
You purchased a stock at the end of the prior year at a price of $96. At the end of this year the stock pays
You purchased a stock at the end of the prior year at a price of $96. At the end of this year the stock pays a dividend of $1.20 and you sell the stock for $103. 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. Omit the "%" sign in your response.)
Pretax return % ?
Aftertax return % ?
PLEASE FOLLOW INSTRUCTIONS CAREFULLY AND PLEASE FOLLOW INSTRUCTIONS ON DECIMALS, PLEASE AND THANK YOU !!!!!!!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started