State income tax on investment income

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After reading this? chapter, it? isn't surprising that? you're becoming an investment wizard. With your newfound expertise you purchase 100 shares of KSU Corporation for ?$35.6235.62 per share. Over the next 12 months assume the price goes up to $ 44.94 per? share, and you receive a qualified dividend of ?$0.52 per share.

What would be your total return on your KSU Corporation? investment?

Assuming you continue to hold the? stock, calculate your? after-tax return. How is your realized? after-tax return different if you sell the? stock?

In both cases assume you are in the 25 percent federal marginal tax bracket and 15 percent? long-term capital gains and qualified dividends tax bracket and there is no state income tax on investment income.

Reference no: EM131308665

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