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

StockExpected DividendExpected Capital GainA$0$ 4B1010C260

a.If each stock is priced at $100, 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 (iii) 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.)

StockPensionInvestor CorporationIndividualA%%%B%%%C%%%

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.(Do not round intermediate calculations. Round your answers to 2 decimal places.)

StockPriceA$B$C$

The expected pretax return on three stocks is divided between dividends and capital gains in the following way: Slack ExpectedDividand Expecbdapihlain 4 A 5 D B 10 10 0 213 D a. if each stock is priced at $1DD. 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 [iii] an individual with an effective tax rate of 15% on dividends and 16% on capital gains? [Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places] Shel: Fenian InvestorCorpcralion Indivihal a :v :t :v is. Suppose that investors pay 50% tax on dividends and 20% tax on capital gains. If stocks are priced to yield an aftertax retum ofB%. what would t, Br and 0 each sell for? Assume the expected dividend is a level perpetuity. {Do not round intermediate calculations. Round your answers to 2 decimal places.) Cumin-E