The expected pretax return on three stocks is divided between dividends and capital gains in the following way Expected Expected Stock Dividend Capital Gain $0 $10 5 5 C A B 10 Required: a. If each stock is priced at $105, what are the expected net percentage returns on each stock to (1) a pension fund that does not pay taxes, (l) a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 63%), and (ii) an individual with an effective tax rate of 10% on dividends and 5% on capital gains? b. Suppose that investors pay 40% tax on dividends and 10% tax on capital gains. If stocks are priced to yield an after-tax return of 10%, what would A, B, and C each sell for? Assume the expected dividend is a level perpetuity. Complete this question by entering your answers in the tabs below. Req A Req If each stock is priced at $105, what are the expected net percentage returns on each stock to (1) a pension fund that does not pay taxes, (W) a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3%), and (Ile) an individual with an effective tax rate of 10% on dividends and 5% on capital gains? (Do not round Intermediate calculations, Enter your answers as a percent rounded to 2 decimal places.) Show less Stock Pension Individual Investor Corporation % % % % 'N X % % %