Financial accounting 1.You bought a stock at the end of last year for $75. Atthe end of this year, the stock pays a dividend of $2.25and you sell the stock for $84. Calculate your returnfor the year.2. If dividends are taxed at 20% and long-term capitalgains are taxed at 25%, what is your after-tax returnfor the year? (Round answers to 2 decimal places)

Step 1: DefinitionStock Return measures the percentage gain or loss on an investment, including…

Answered: 1.You bought a stock at the end of last…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What is your aftertax return for the year?
You purchased a stock at the end of last year at a price of $98. At the end of this year, the stock pays a dividend of $2.10 and you sell the stock for $107. 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.) Pretax return 11.33 % Aftertax return %
Financial accounting
Financial accounting questions
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An investor purchases a share for £6.89 at the beginning of the year. Six months later, the investor receives a dividend of £0.08 (net of tax) and immediately sells the share for £7.26. Capital gains tax of 30% is paid on the difference between the sale and the purchase price. Calculate the net annual effective rate of return the investor obtains on the investment. 数字 Enter a percentage correct to 2 decimal places %
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One year ago, you purchased stock ABC at price $10. During the year, the company paid $1 per share as taxable dividend. If you sell the stock at $13 today, what would be your realized after - tax return? Assume your marginal personal tax rate on income is 30% and the dividend tax credits of 12% can be applied. a. 29.65% b. 40% c. 33.7% d. 31.8%
$30 per share, holds the shares for 5 years, and sells them for $65. (Hint: Find the holding period return and divide by the number of years in the holding period.) The annualized rate of return is ☐ %. (Round to two decimal places.) What is his after-tax rate of return if he is in the 25 percent marginal tax bracket? The tax due is $ (Round to the nearescent.) The after-tax rate of return is ☐ %. (Round to two decimal places.)
You purchased a share of stock in The Hephaestus Company last year at $40, which paid you a $2 dividend during the year. What is your holding period return if: a. You sell the stock for $44. b. You sell the stock for $50. c. You sell the stock for $35
You just purchased a share of SPCC for $101.You expect to receive a dividend of $6 in one year. If you expect the price after the dividend is paid to be $115, what total return will you have earned over the year? What was your dividend yield? Your capital gain rate? _____________________%.(Round to two decimal places.)

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