Answered: You purchase a stock for $95. At…

You purchase a stock for $95. At year-end, it pays a $2.50 dividend and you sell it for $102. Dividends taxed at 15% Long-term capital gains taxed at 20% What is the after-tax return for the year?

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter10: Forecasting Financial Statement

Section: Chapter Questions

Problem 8QE

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Question

Please provide the answer to this financial accounting question with proper steps.

You purchase a stock for $95. At year-end, it pays a $2.50
dividend and you sell it for $102.
Dividends taxed at 15%
Long-term capital gains taxed at 20%
What is the after-tax return for the year?

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