Question

Asked Nov 1, 2019

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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%

Step 1

Price of Stock = $34

Selling Price of Stock = $36

Calculation of Pre-tax Capital gain is as follows:

Step 2

Price of the Stock = $34

Dividend per Share = $1

Calcu...

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