Question: The expected pretax return on three stocks is divided between dividends and capital gains in the following way: Expected Dividend Expected Capital Gain $10 Stock

The expected pretax return on three stocks is divided between dividends

The expected pretax return on three stocks is divided between dividends and capital gains in the following way: Expected Dividend Expected Capital Gain $10 Stock SC A 10 0 C a. If each stock is priced at $130, 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 35% (the effective tax rate on dividends received by corporations is 10.5%), and (ii) 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.) Kda Investor Stock Pension Individual Corporation A % % B % % % C %

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