The expected pretax return on three stocks in divided

Reference no: EM13482804

The expected pretax return on three stocks in divided between dividends and capital gains in the following way: Stock A, Expected Dividend is $0, Expected Capital Gain is $20; Stock B, Expected Dividend is $10.00 and Expected Capital Gain is $10; Stock C Expected Dividend is $20 and Expected Capital Gain is 0. A. If each stock is priced at $100, what are the expected net returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 35%, and (iii) an individual with an effective tax rate of 15% on dividends and 10% on capital gains? (Do not round intermediate calculations.Stock A Pension__%, Investor Corporation _% Individual ___% Stock B Pension __%, Investor Corporation __%, Individual _% Stock C Pension __%, Investor Corporation _%, Individual _% B. Suppose that investors pay 50% tax on dividends and 20% tax on capital gains. If stocks are priced to yield an 10% return after tax, what would A, B, and C each sell for? Assume the expected dividend is a level perpetuity.Stock A $__PO; Stock B $__PO; Stock C $_PO.

Reference no: EM13482804

Questions Cloud

Delmott sells a snowboard xpert that is popular with : delmott sells a snowboard xpert that is popular with snowboard enthusiasts. below is information relating to delmotts

Assume that you have been assigned to explain the following : assume that you have been assigned to explain the following to upcs capital planning committeechallenges associated

If required round your cost per equivalent unit amounts to : information for the sandy manufacturing company for the month of july 2012 is as follows.beginning work in

Carson is paid by commission only he receives 16 of his : carson is paid by commission only. he receives 16 of his sales. how much would he earn in a week if he sales reached

The expected pretax return on three stocks in divided : the expected pretax return on three stocks in divided between dividends and capital gains in the following way stock a

The krause corporation acquired 80 percent of the 100000 : the krause corporation acquired 80 percent of the 100000 outstanding voting shares of leahy inc. for 7.00 per share on

The cash account for fit bike co at august 1 2014 indicated : the cash account for fit bike co. at august 1 2014 indicated a balance of 12190. during august the total cash deposited

Prince companys total overhead costs at various levels of : prince companys total overhead costs at various levels of activity are presented below month direct labour-hours total

Gemini technologies has two product lines lasers and : gemini technologies has two product lines lasers and integrated circuits. during the current month the two product

User Account

All Pages