State income tax on investment income


You have just purchased 100 shares of KSU Corporation 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 is your after-tax return if you sell the stock? Assume you are in the 25 percent federal marginal tax bracket and there is no state income tax on investment income.

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Finance Basics: State income tax on investment income
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