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The expected pretax return on three stocks is divided between dividends and capital gains in the following way:Stock ExpectedDividend ExpectedCapital GainA $0 $28B 14 14C 28 0 a.If each stock is priced at $100 what are the expected net returns on each stock to (i) a pension fund that does not pay taxes (ii) a corporation paying tax at 35% and (iii) an individual with an effective tax rate of 15% on dividends and 10% on capital gains? (Do not round intermediate calculations. Round your answers to 2 decimal places.)Stock Pension InvestorCorporation IndividualA % % %B % % %C % % % b.Suppose that investors pay 50% tax on dividends and 20% tax on capital gains. If stocks are priced to yield an 10% return after tax 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 P0A $BC

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