Exhibit 13-1 You Currently Hold 100 Shares of Bavarian Sausage, Inc. Stock

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%