Answered

At Westonci.ca, we provide clear, reliable answers to all your questions. Join our vibrant community and get the solutions you need. Our Q&A platform offers a seamless experience for finding reliable answers from experts in various disciplines. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Help!!
Find the after-tax return to a corporation that buys a share of preferred stock at $49, sells it at year-end at $49, and receives a $4 year-end dividend. The firm is in the 21% tax bracket.

This is what I got so far:

Before-tax:

(49-49)+4 = 4,

4/49 = 0.0816,

After-tax:

0.0816 (1-021) = 0.06448 or 6.45%

Sagot :

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.