Question

Hello,
Can i get some help with the missing ones, i was able to do the others but I cannot

figure out those.

The expected pretax return on three stocks is divided between dividends and capital gains in the following way:

Stock Expected Dividend Expected Capital Gain

A $0 $10

B 5 5

C 10 0

a. If each stock is priced at $105, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 45% (the effective tax rate on dividends received by corporations is 10.5%), and (iii) an individual with an effective tax rate of 10% on dividends and 5% on capital gains?

Stock Pension Investor Corporation Individual

A 9.52% ____% 9.05%

B 9.52% ____% ____%

C 9.52% ____% ____%

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