Dramatic Corporation operates in the IT industry. An investor buys a stock of the company today for

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Dramatic Corporation operates in the IT industry. An investor buys a stock of the company today for $30, receives a dividend of $3 at the end of the year, and then sells the stock for $36. If the dividend is taxed at 40% and the capital gain at 20%.

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What is his return after tax?

Related Book For answer-question

Investments An Introduction

ISBN: 978-0324561388

9th Edition

Authors: Herbert B Mayo

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Posted Date: Nov 27, 2020 12:45 AM

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Dramatic Corporation operates in the IT industry. An investor buys a stock of the company today for

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Expert Answer:

After tax dividend income dividend1t 3104 180 Capital gain ... View the full answer

Investments An Introduction

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