You purchased a stock at the end of the prior year at a


You purchased a stock at the end of the prior year at a price of $94. At the end of this year the stock pays a dividend of $1.40 and you sell the stock for $95. 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 after-tax return for the year?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You purchased a stock at the end of the prior year at a
Reference No:- TGS01403972

Expected delivery within 24 Hours