Question

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% and your capital gains tax rate is 20%. Your after-tax rate of return is ___________________.
A. 8.00%
B. 10.25%
C. 12.50%
D. 9.80%
E. 8.75%

Answer

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