You buy stock for $34 per share and sell it for $36 after you collect a $1 per share dividend, your pre tax capital gain is _______________, and your pre tax dividend is ____________? A. 2.94%; 2.78% B. 8.82%; 0.00% C. 5.88%; 2.94% D. 5,56%; 2.78% E. 4.65%; 3.71%

You buy stock for $34 per share and sell it for $36 after you collect a $1 per share dividend, your pre tax capital gain is ___, and your pre tax dividend is ? A. 2.94%; 2.78% B. 8.82%; 0.00% C. 5.88%; 2.94% D. 5,56%; 2.78% E. 4.65%; 3.71%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 5P

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Question

You buy stock for $34 per share and sell it for $36 after you collect a $1 per share dividend, your pre tax capital gain is _______________, and your pre tax dividend is ____________?

A. 2.94%; 2.78%

B. 8.82%; 0.00%

C. 5.88%; 2.94%

D. 5,56%; 2.78%

E. 4.65%; 3.71%

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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