Question: You purchase a stock at the beginning of the year at a price of $108. At the end of the year the stock pays a

You purchase a stock at the beginning of the year at a price of $108. At the end of the year the stock pays a of $1.80 and you sell the stock for $117. What is your return for the year? Now suppose that dividends are taxed at 15 percent and long-term capital gains (over 11 months) are taxed at 30 percent. What is your aftertax return for the year?

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