Your total return on ksu corporation investment

Assignment Help Financial Management

Reference no: EM131933869

After reading this chapter, it isn't surprising that you're becoming an investment wizard. With your newfound expertise you purchase 100 shares of KSU Corporation for $57.86 per share. Over the next 12 months assume the price goes up to $ 68.39 per share, 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.

Question - Your total rate of return on your KSU Corporation investment is___________ %. (Round to two decimal places.)

Reference no: EM131933869

Questions Cloud

What would be the break-even interest rate : What would be the break-even interest rate (BEIR), at which the use of leverage neither favorable nor unfavorable?

What is the expected gain/loss of institutional investors : What price would retail investors offer for the shares each time firm attempt to raise cash via an IPO? What is expected gain/loss of institutional investors.

What is the return on equity and return on assets : A bank has a return on assets of 2 percent, $40 million in assets, and $4 million in equity. What is the return on equity?

Calculate the net free cash flow : Given the following information, calculate the Net Free Cash Flow. Net income = $25,000; Capital expenditures = $4,000;

Your total return on ksu corporation investment : What would be your total return on your KSU Corporation investment? Assuming you continue to hold the stock, calculate your after-tax return.

According to the black-scholes formula : What would be a maximum monthly fee to a perfect market timer, according to the Black-Scholes formula?

Most likely to result in positive cash flow to creditors : Which of the following is the most likely to result in a positive cash flow to creditors?

The us has had a large deficit for decades : The us has had a large deficit for decades. This suggests weakening of the dollar with other things being equal.

Most likely to result in positive cash flow to creditors : Which of the following is most likely to result in a positive cash flow to creditors?

User Account

All Pages