Let’s consider the dividend and the dividend yield of the Calzone Corporation. Last year, the Corporation paid a $.50 quarterly dividend which was the same dividend as the previous year. The stock sold for $88 last year and lately the stock is selling for $100.What was the annual dividend this year?What was the dividend yield last year?What is the current dividend yield?If a New York City resident investor bought 1,000 shares of the stock at the beginning of the year for $88 and held the stock until the end of this year when the stock was selling for $100, what would be the realized return on this investment and the unrealized return on this investment?What would be the rate of return on this investment (a rate is expressed as %)Would the investor be required to pay any tax on this investment? If so, how much tax would be required if the investor’s combined federal, state and city income tax bracket was 35%. (25% federal and 10% combined state and city.)

Part 1: Quarterly Dividend is a which given in every 3 months or it can be said this dividend…

Answered: Let’s consider the dividend and the…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 9MC

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Let’s consider the dividend and the dividend yield of the Calzone Corporation. Last year, the Corporation paid a $.50 quarterly dividend which was the same dividend as the previous year. The stock sold for $88 last year and lately the stock is selling for $100.
- - What was the annual dividend this year?
  - What was the dividend yield last year?
  - What is the current dividend yield?
If a New York City resident investor bought 1,000 shares of the stock at the beginning of the year for $88 and held the stock until the end of this year when the stock was selling for $100, what would be the realized return on this investment and the unrealized return on this investment?
What would be the rate of return on this investment (a rate is expressed as %)
Would the investor be required to pay any tax on this investment? If so, how much tax would be required if the investor’s combined federal, state and city income tax bracket was 35%. (25% federal and 10% combined state and city.)

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