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You purchased a stock at the end of the prior year at a price of $83....

You purchased a stock at the end of the prior year at a price of $83. At the end of this year the stock pays a dividend of $2.00 and you sell the stock for $95. What is your return for the year? Now suppose that dividends are taxed at 15 percent and long-term capital gains (over 11 months) are taxed at 30 percent. What is your aftertax return for the year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
  Pretax return %
  Aftertax return %
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Calculate the pre tax return and after tax returm as follows 1 Particular 2 Opening price 3 Dividend 4 Closing price 5 Pretax return Amount 83 $2 95 16.87% 7 Long term capital gain ta:x 8 Short term capital gain tax 9 After tax capital gain 10 After tax dividend 11 After tax return 30% 15% 8.4 1.7 12.17% Formulas 1 Particular 2 Opening price 3 Dividend 4 Closing price 5 Pretax return 6 7 Long term capital gain tax 0.3 8 Short term capital gain tax 0.15 9 After tax capital gain 10 After tax dividend 11 After tax return Amount 83 95 (B4+B3-B2)/B2 (B4-B2)*(1-B7) B3 (1-B8) -(B9+810)/B2

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