Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.
Sagot :
Answer:
a. $28.5
b. 12.28%
c. $29.18
d. 13.09%
Explanation:
a. let current price = p
p*1.10 = 2(1-0.3)+30
= 1.4+30/1.10
= 31.4/1.10
= 28.5
the current price of the stock is approximately 28.5 dollars
b. (30+2 /28.5)-1
= 32/28.5 - 1
= 0.1228
= 12.28%
expected before tax rate is 12.28%
c. 3(1-0.3)+30 / 1.10
= 3*0.7+30/1.10
= $29.18
d. before tax rate of return
= (3$ + 30-29.18)/29.18
= 0.1309
= 13.09%
it is now higher here given that given that a greater dividend causes more tax burden.
Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.