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Compute the after-tax holding period return

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Reference no: EM131627427

Question: You purchased 100 shares of a $2 preferred stock 1 year and 1 day ago for $25 per share. You sold the stock today for $30 per share. Assuming you are in a 25% tax bracket, calculate your after-tax holding period return,

a. assuming the dividends are treated as dividends for tax purposes.

b. assuming the dividends are treated as interest income for tax purposes.

Reference no: EM131627427

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