Assuming continue to hold stock-what is after-tax return

Assignment Help Financial Management

Reference no: EM131309720

With your newfound expertise you purchase 100 shares of KSU Corporation for ?$35.29 per share. Over the next 12 months assume the price goes up to $ 43.26 per? share, and you receive a qualified dividend of ?$0.52 per share.

What would be your total return on your KSU Corporation? investment? 24.05

Assuming you continue to hold the? stock, what is the? after-tax return. (this is where I am having trouble... please detail this answer... thanks)

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.

Reference no: EM131309720

Questions Cloud

What is net present value and rate of return of project : International Machinery Company (IMC) is a Swedish multinational manufacturing company. Currently, IMC's financial planners are considering undertaking a 1-year project in the United States. If IMC undertakes the project, what is the net present valu..

What is the effective annual interest rate : Second Bank offers J and J Enterprises a $250,000 line of credit at an annual rate of interest of 8.75 percent. The loan agreement also requires a 5 percent compensating balance on any funds used. What is the effective annual interest rate if the fir..

Determine the difference in the present worth values : Determine the difference in the present worth values of the following two commodity contracts at an interest rate of 8% per year. Contract 1 has a cost of $10,000 in year 1; costs will escalate at a rate of 4% per year for 10 years. Contract 2 has th..

Lower asset turnover ratios are generally indicative : Lower asset turnover ratios are generally indicative of more efficient asset management. Borrowing money causes a corporation's return on net assets to increase because everything else being equal the higher the leverage, the higher return on net ass..

Assuming continue to hold stock-what is after-tax return : With your newfound expertise you purchase 100 shares of KSU Corporation for ?$35.29 per share. Over the next 12 months assume the price goes up to $ 43.26 per? share, and you receive a qualified dividend of ?$0.52 per share. Assuming you continue to ..

Evaluate relevant market averages and indexes : Gather and evaluate relevant market averages and indexes over the past 6 months to assess recent stock and bond market conditions. Describe the conditions in each of these markets. Using recent history, coupled with relevant economic and current even..

Assuming the stock returns follow normal distribution : A stock had an average annual rate of 8% with standard deviation of 6%. Based on these returns, what is the probability that this stock will earn at least 20% in anyone given year assuming the stock returns follow normal distribution? Which of the fo..

Values of mean return and variance for the stock fund : Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.20 −38% −12% Mild recession 0.20 −26% 7% Normal growth 0.35 8% 3% Boom 0.25 46% 7% a. Calculate the values of mean return and var..

Annual earnings of the company without new investment : XYZ Inc. has 1.5 million shares outstanding. The company currently pays out all its earnings as dividends and just paid a dividend of $6 per share. Its annual earnings are expected to be in perpetuity. It is considering a new project that requires re..

User Account

All Pages