You own 100 shares of stock that you bought when the stock price was $30 per...
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You own 100 shares of stock that you bought when the stock price was $30 per share. Assume that you sell your shares for $33 per share one year after you bought them, and you've received dividends during the year totaling $0.90 per share. If you're in the 24 percent federal income tax bracket and your dividends and capital gains both qualify for taxation at the capital gains tax rate, what is your after-tax rate of return? You own 100 shares of stock that you bought when the stock price was $30 per share. Assume that you sell your shares for $33 per share one year after you bought them, and you've received dividends during the year totaling $0.90 per share. If you're in the 24 percent federal income tax bracket and your dividends and capital gains both qualify for taxation at the capital gains tax rate, what is your after-tax rate of return?
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Investment number of shares Initial price 100 30 3000 Later investme... View the full answer
Related Book For
Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
Posted Date:
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