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 6 Stock Dividend Capital Gain A $0 $16 DDIHIS B 5 5 c 10 e Skipped I Required: El a. If each stock is priced at $200, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay eEEDk 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 of15% on dividends and 10% on capital gains? b. Suppose that investors pay 50% tax on dividends and 20% tax on capital gains. If 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. Him Complete this question by entering your answers in the labs below. Prim Rqu Rqu If each stock is priced at $200, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a oorporation 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 I554