You buy a stock for $45 per share and sell it for $50 after holding it...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You buy a stock for $45 per share and sell it for $50 after holding it for slightly over a year and collecting a $5.3 per share dividend. If dividend income is taxed at a 25% rate and capital gains are taxed at 29%, what is your after-tax holding period return? (Write your answer in percentage and round it to 2 decimal places) You buy a stock for $45 per share and sell it for $50 after holding it for slightly over a year and collecting a $5.3 per share dividend. If dividend income is taxed at a 25% rate and capital gains are taxed at 29%, what is your after-tax holding period return? (Write your answer in percentage and round it to 2 decimal places)
Expert Answer:
Answer rating: 100% (QA)
The question youve presented is asking for the calculation of the aftertax holding period return on ... View the full answer
Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
Posted Date:
Students also viewed these finance questions
-
A company offered shares in their IPO at $2.00 each. Their first sale on the ASX was at $2.20. By the end of the first day of trading their shares were trading at $2.50 and today they are trading at...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
Consider the two tables shown in Figure 6.37. The TerID column in the SALES_REP relation is a foreign key referring to the primary key column TerID in the TERRITORY relation. Figure 6.37 Relations...
-
Which of the curves shown in Figure 10-43 corresponds to the location of the feet in this test model? A. 1 B. 2 C. 3 D. 4 3 20 Angular speed (rpm) 10 40 50 2. 3. 2. Acceleration (g)
-
Alternative minimum tax rates in individuals: a. Are the same as regular tax rates but on adjusted minimum taxable income b. Higher than the highest marginal tax rate for individuals depending on...
-
Assuming the same data as given in problem 9, was the well in each case profitable? Discuss your answer. Problem 9:- Property cost (acquisition cost). Drilling cost (one well). Estimated completion...
-
The management of Peterson Manufacturing Company has asked for your assistance in deciding whether to continue manufacturing a part or to buy it from an outside supplier. The part, called Tropica, is...
-
Consider again the market studied in Question 2, The demand curve is given by P = 100 Q and the marginal cost curve is given by MC = 10. This time we are going to assume that firms must invest funds...
-
Annette Creighton opened Creighton Consulting. She rented a small office and paid a part-time worker to answer the telephone and make deliveries. Her chart of accounts is as follows: Creighton's...
-
Investment Advisors, Inc., is a brokerage firm that manages stock portfolios for a number of clients. A particular portfolio consists of U shares of U.S. Oil and H shares of Huber Steel. The annual...
-
You observe a ball that moves (33.3 0.1) cm in (16.35 0.04) s. What is the observed speed of the ball (best estimate and most probable uncertainty)? (speed = distance / time) (1.542 0.005) cm/s...
-
(a) f(z)= u(x, y) +iv(x,y) where u is the velocity potential and v is the stream function V = Vu Show that V.v=0 and Vxv=0. DT 0
-
Q2: explain the difference between the peak input voltage Vp(in) and the output half-wave Vp(rect) Q3: Explain the difference between the peak input voltage Vp(in) and the output Full-wave Vp(rec)...
-
Jim and Greg are both driving to the same destination, a distance of 180 miles away. Jim is driving at a constant speed of 50 mph, while Greg is driving at 80 mph. Assuming both maintain their speeds...
-
Consider two charges, Q-7.0 mC and Q3.4 mC separated by distance r;=2.77 cm. The charge Q moves, changing the distance between the charges to r-4.56 cm. What is the work done by the electric force...
-
%3D A horizontal curve has a radius of 980.80 ft.; an I = 2300'00"; and, PC Station %3D 76+68.50 ft. Determine: Deflection angle from the PC to station 79+00.00 ft. = Provide the answer in degrees,...
-
An item of depreciable machinery was acquired on 1 July 2009 for $120,000 by cash It is expected to have a useful life of 10 years and zero salvage value On 1 July 2012, it was decided to revalue the...
-
A widow currently has a $93,000 investment yielding 9 percent annually. Can she withdraw $16,000 a year for the next 10 years?
-
You purchase 100 shares for $50 a share ($5,000), and after a year the price rises to $60. What will be the percentage return on your investment if you bought the stock on margin and the margin...
-
SLM, Inc., with sales of $1,000, has the following balance sheet: It earns 10 percent on sales (after taxes) and pays no dividends. a. Determine the balance sheet entries for sales of $1,500 using...
-
Eatern and Sons Ltd accounts for its manufacturing costs using a job order costing system and has provided the following production data during June 2019. Job Z241 was in process as of 1 June with a...
-
Abbott Ltd produces a chemical used to clean showers in a single process in the Production Department. Raw materials in the form of chemicals are added at the beginning of the process, and a litre...
-
The April 2019 transactions of Jackson Productions Ltd, which uses a job order costing system, are shown below. (Ignore GST.) 1. Raw materials purchased, $342 000. 2. Raw materials issued to...
Study smarter with the SolutionInn App