After reading this chapter, it isn't surprising that you're becoming an investment wizard. With your...
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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 $53.86 per share. Assume the price goes up to $67.57 per share over the next 12 months and you receive a qualified dividend of $0.63 per share. What would be your total return on your KSU Corporation investment? Assurning 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 % (Round to two decimal places.) Screenshot Screenshot
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