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

Chrome File Edit View History Bookmarks People Tab Window Help O O Bb Assignment Instructic X ON X 80% Wed 12:12 A G Google Account X My Drive - Google Di X Untitled document - X C MMIP - Mcdonald's x Untitled document - x Connect ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-g. Chapter 17 Homework i Saved Help Save & Exit Sub 3 Check my wo Expected Expected Stock Dividend Capital Gain SO $10 5 5 6 10 points Skipped Required: a. If each stock is priced at $105, 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 6.3%), and (iii) an individual eBook 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%, Hint what would A, B, and C each sell for? Assume the expected dividend is a level perpetuity. Print Complete this question by entering your answers in the tabs below. Req A Req 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. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Stock Price B