The expected pretax return on three stocks is divided between dividends and capital gains in the following way:

Requlred:

a$.$ If each stock is priced at $$150,$ 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 effectlve tax rate on dividends recelved by corporations is $6\mathrm{.}3\%),$ and $($III$)$ an

Individual with an effectlve tax rate of $15\%$ on dividends and $10\%$ on capital gains?

b$.$ Suppose that Investors pay $50\%$ tax on dividends and $20\%$ tax on capltal galns. If stocks are priced to yleld an after$-$tax return of

$8\%,$ what would $A,B,$ and $C$ each sell for? Assume the expected dividend is a level perpetulty.

Complete this question by entering your answers in the tabs below.

If each stock is priced at $$150,$ 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 $6\mathrm{.}3\%),$ and

$($iii$)$ an individual with an effective tax rate of $15\%$ on dividends and $10\%$ on capital gains?

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to $2$ decimal places.