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

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

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 7MC: Cochran also has asked you to estimate Computrons EVA. She estimates that the after-tax cost of...

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