Problem 2-32 (Algo) Required: Find the after-tax return to a corporation that buys a share of preferred stock at $54, sells it at year-end at $54, and receives a $8 year-end dividend. The firm is in the 21% tax bracket. (Round your answer to 2 decimal places.) After-tax rate of return %

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
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Problem 2-32 (Algo)
Required:
Find the after-tax return to a corporation that buys a share of preferred
stock at $54, sells it at year-end at $54, and receives a $8 year-end
dividend. The firm is in the 21% tax bracket. (Round your answer to 2
decimal places.)
After-tax rate of return
%
Transcribed Image Text:Problem 2-32 (Algo) Required: Find the after-tax return to a corporation that buys a share of preferred stock at $54, sells it at year-end at $54, and receives a $8 year-end dividend. The firm is in the 21% tax bracket. (Round your answer to 2 decimal places.) After-tax rate of return %
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