Hello,

I need help this question both A and B. I posted the answers as well

I dont understand how they come up with both answers.

Thanks.

Mr. Wolfe's stockbroker recently sent him a research report on a stock that is currently selling for $25. According to the report, the stock will pay $2 per share of dividends n The commission for trading stocks is 1.5% of the stock price, for either buy or sell. after one year is $30 (a) Calculate the expected rate of return, after all commissions, if Mr. Wolfe buys and holds the stock for one year. (b) What is Mr. Wolfe's expected after-tax rate of return if he lives in Ontario and is in the 26% federal tax bracket, the 11.16% Ontario bracket, and the 20% Ontario surtax bracket