After-tax rate of return

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With your newfound? expertise, you purchase 100 shares of KSU Corporation for ?$30.14 per share. Assume the price goes up to $35.68 per share over the next 12 months and you receive a qualified dividend of ?$0.51 per share. What would be your total return on your KSU Corporation? investment? Assuming you continue to hold the? stock, calculate your? after-tax return. How is your realized? after-tax return different if you sell the? stock? In both cases assume you are in the 25 percent federal marginal tax bracket and 15 percent? long-term capital gains and qualified dividends tax bracket and there is no state income tax on investment income.

Your total rate of return on your KSU Corporation investment is 20.0720.07?%.

Assuming you continue to hold the? stock, your? after-tax rate of return is what?

Reference no: EM133035637

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