You Buy a Stock for $30 Per Share and Sell

question 63

Multiple Choice

You buy a stock for $30 per share and sell it for $33 after holding it for slightly over a year and collecting a $0.75 per share dividend. Your ordinary income tax rate is 28 percent and your capital gains tax rate is 20 percent. Your after-tax rate of return is ________.

• A)8.00 percent
• B)10.25 percent
• C)12.50 percent
• D)9.80 percent
• E)8.75 percent

Comprehend the federal and provincial governments' powers over courts and court structures across provinces.

Identify the ability to enforce judgments within the court system.

Differentiate between civil and criminal court procedures.

Distinguish between questions of fact and questions of law in court cases.

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Definitions:

Discount Rate

Within DCF analysis, it's the rate employed to compute the present economic value of expected future cash inflows.

Present Value

The current value of a future sum of money or stream of cash flows, discounted at a specific interest rate.

Compound Rate

The rate at which interest on an investment or loan is calculated on both the initial principal and the accumulated interest from previous periods.

Time Value of Money

The concept that a sum of money is worth more now than the same amount in the future due to its potential earning capacity.