Please complete "Required C" and "Required D" for institutions, individuals and corporations for low-payout stock, medium-payout stock and high-payout stock.

Suppose that there are just three types of investors with the following tax rates: Institutions Dividends Capital gains Individuals 50% 20 Corporations 20% 50 Individuals invest a total of $80.3 billion in stock and corporations invest $10.36 billion. The remaining stock is held by the institutions. All three groups simply seek to maximize their after-tax income. These investors can choose from three types of stock offering the following pretax payouts per share: Low Payout Medium Payout $ 8 $ 8 High Payout $ 35 Dividends Capital gains 18 8 These payoffs are expected to persist in perpetuity. The low-payout stocks have a total market value of $100.3 billion, the medium- payout stocks have a value of $50.3 billion, and the high-payout stocks have a value of $120.3 billion. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Who are the marginal investors that determine the prices of the stocks? The marginal investors are the institutions Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Suppose that this marginal group of investors requires an after-tax return of 12%. What are the prices of the low-, medium-, and high-payout stocks? (Do not round intermediate calculations. Round your answers to 2 decimal places.) $ Price of low-payout stock Price of medium-payout stock Price of high-payout stock $ 216.67 133.33 291.67 $ Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Calculate the after-tax returns of the three types of stock for each investor group. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Institutions % % Individuals % Low-payout stock Medium-payout stock High-payout stock Corporations % % % % % Suppose that there are just three types of investors with the following tax rates: Institutions Dividends Capital gains Individuals 50% 20 Corporations 20% 50 Individuals invest a total of $80.3 billion in stock and corporations invest $10.36 billion. The remaining stock is held by the institutions. All three groups simply seek to maximize their after-tax income. These investors can choose from three types of stock offering the following pretax payouts per share: Low Payout Medium Payout $ 8 $ 8 High Payout $ 35 Dividends Capital gains 18 8 These payoffs are expected to persist in perpetuity. The low-payout stocks have a total market value of $100.3 billion, the medium- payout stocks have a value of $50.3 billion, and the high-payout stocks have a value of $120.3 billion. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Who are the marginal investors that determine the prices of the stocks? The marginal investors are the institutions Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Suppose that this marginal group of investors requires an after-tax return of 12%. What are the prices of the low-, medium-, and high-payout stocks? (Do not round intermediate calculations. Round your answers to 2 decimal places.) $ Price of low-payout stock Price of medium-payout stock Price of high-payout stock $ 216.67 133.33 291.67 $ Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Calculate the after-tax returns of the three types of stock for each investor group. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Institutions % % Individuals % Low-payout stock Medium-payout stock High-payout stock Corporations % % % % %