Problem 3. The expected pretax return on three stocks is divided between dividends and capital gains in the following way. (a) If each stock is priced at $100, what are the expected net returns on each stock to a. A tax-exempt pension fund; b. A corporation paying tax at 35% (Note: corporations are taxed on only 30% of the dividends that they receive; they are fully taxed on the capital gains); c. An individual paying tax at 39.6% on investment income and 28% on capital gains; d. A security dealer paying tax at 35% on investment income and capital gains? (b) Suppose that before the 1986 Tax Reform Act stocks A, B, and C were priced to yield an 8% after-tax return to individual investors paying 50% tax on dividends and 20% tax on capital gains. What would A, B, and C each sell for