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

Required:

a$.$ If each stock is priced at $$170,$ 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?

b$.$ Suppose that investors pay $50\%$ tax on dividends and $20\%$ tax on capital gains. If stocks are priced to yield an after$-$tax return of

$8\%,$ 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.

Suppose that investors pay $50\%$ tax on dividends and $20\%$ tax on capital gains. If stocks are priced to yield an after$-$tax

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

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.