Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Financial accounting questions

1. You purchased a stock at the end of the prior year at a
price of $89. At the end of this year the stock pays a
dividend of $2.60 and you sell the stock for $96. What is
your return for the year?
2. 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 after-tax return for the year? (Do not
round intermediate calculations. Enter your answers as a
percent rounded to 2 decimal places.)
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Transcribed Image Text:1. You purchased a stock at the end of the prior year at a price of $89. At the end of this year the stock pays a dividend of $2.60 and you sell the stock for $96. What is your return for the year? 2. 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 after-tax return for the year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
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