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After-tax rate of return on the dividend

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Reference no: EM133073032

As the CFO of Facebook, you invest $100,000 in a preferred stock for the corporate cash account at $30 a share. During the year you earned dividend income of $3 a share and Facebook is in the 30% tax bracket. Please calculate the after-tax rate of return on the dividend.

Reference no: EM133073032

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