An Investor Buys a Stock Today for $26,receives a Dividend

question 59

Multiple Choice

An investor buys a stock today for $26,receives a dividend of $2 at the end of the year and then sells the stock for $30.If the dividend is taxed at 40% and the capital gain at 20%,what is his return after tax?

• A) 23.08%
• B) 16.92%
• C) 9.23%
• D) 31.15%

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Definitions:

Beginning Inventory

The value of a company's inventory at the start of an accounting period, carried over from the end of the previous period.

Cost Of Goods Sold

The total cost directly associated with producing or acquiring the goods sold by a company during a specific period.

Ending Inventory

The worth of merchandise available for purchase at the conclusion of a financial period.

Maturing Obligations

Debts or obligations that are due to be paid within the next accounting period.