NARRBEGIN: Exhibit 14-1
Exhibit 13-1
You currently hold 100 shares of Bavarian Sausage,Inc.stock which you purchased three months ago at $25.50 and which is currently trading at $28.The stock will pay a $3.75 dividend in a few days and the ex-dividend day is tomorrow.Your personal tax rate on dividend income is 25% and the capital gains tax is 15%.
-Refer to Exhibit 14-1.If you decide to sell the stock after you received the dividend and the dividend is fully reflected in the ex-dividend price,what is the total after tax return on the investment?
A) 6.86%
B) 8.33%
C) 11.45%
D) 10.56%
Correct Answer:
Verified
Q46: CashOut,Inc.has a current share price of $50.If
Q47: NARRBEGIN: Exhibit 14-1
Exhibit 13-1
You currently hold 100
Q48: Banana Split Co.has had six 2-for 1
Q49: NARRBEGIN: Exhibit 14-1
Exhibit 13-1
You currently hold 100
Q50: Which of the following are methods to
Q52: Markus Needman,Inc.just paid a 30% stock dividend
Q53: Smith Enterprises declares a 1-4 reverse stock
Q54: The board of directors of Smith Enterprises
Q55: Factors that influence the market's reaction to
Q56: A firm may be legally prevented from
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents