Homework: Payout Policy Assignment 0 3 Saved The expected pretax return on three stocks is divided between dividends and capital gains in the following way: Expected Expected 5 Stock Dividend Co pil'dl Odin points A $0 $10 3 5 5 c 10 o El | eook Required: a. If each stock is priced at $110, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, {ii} a corporation paying tax at 21% {the effective tax rate on dividends received by corporations is 6.3%), and (iii) an individual Hlm with an effective tax rate of1 its on dividends and 10% on capital gains? b. Suppose that investors pay 50% tax on dividends and 20% tax on capital gains. lf stocks are priced to yield an aftertax return of 8%. _ what would A, B, and C each sell for? Assume the expected dividend is a level perpetuity. {F Print Complete this question by entering your answers in the tabs below. Req A Req B If each stock is priced at $110, What are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 21% [the effective tax rate on dividends received by corporations is 6.3%), and (iii) an individual with an effective tax rate of 15% on dividends and 10% on capital gains? {Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Show lessA Investor Corporation Individual Rqu ) Homework: Payout Policy Assignment 0 Saved 3 The expected pretax return on three stocks is divided between dividends and capital gains in the following way: Expected Expected 5 Stock Dividend Cc: pital Odin points A 3'0 $10 3 5 5 C 10 0 El | eook Required: a. If each stock is priced at $110, what are the expected net percentage returns on each stocl