CH.8 STOCK MARKET, HW4, DUE IS ON MONDAY, MARCH 25, BEFORE 11AM Please show your calculation step by step. Otherwise, you will not get any credit on that question. 1) You buy a stock for $34 per share and sell it for $36 after you collect a $1.00 per share dividend. Your pretax capital gain yield is and your pretax dividend yield is?. 2) You buy a stock for $30 per share and sell it for $33 after holding it for slightly over a year and collecting a $0.75 per share dividend. Your ordinary income tax rate is 28 percent and your capital gains tax rate is 20 percent. Your after-tax rate of return is
CH.8 STOCK MARKET, HW4, DUE IS ON MONDAY, MARCH 25, BEFORE 11AM Please show your calculation step by step. Otherwise, you will not get any credit on that question. 1) You buy a stock for $34 per share and sell it for $36 after you collect a $1.00 per share dividend. Your pretax capital gain yield is and your pretax dividend yield is?. 2) You buy a stock for $30 per share and sell it for $33 after holding it for slightly over a year and collecting a $0.75 per share dividend. Your ordinary income tax rate is 28 percent and your capital gains tax rate is 20 percent. Your after-tax rate of return is
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:CH.8 STOCK MARKET, HW4, DUE IS ON MONDAY, MARCH 25,
BEFORE 11AM
Please show your calculation step by step. Otherwise, you will not get any credit
on that question.
1) You buy a stock for $34 per share and sell it for $36 after you collect a $1.00 per share dividend.
Your pretax capital gain yield is and your pretax dividend yield is?.
2) You buy a stock for $30 per share and sell it for $33 after holding it for slightly over a year and
collecting a $0.75 per share dividend. Your ordinary income tax rate is 28 percent and your capital
gains tax rate is 20 percent. Your after-tax rate of return is
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