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Tim Purchased a Stock Ten Months Ago for $14 a Share

Question 57

Multiple Choice

Tim purchased a stock ten months ago for $14 a share, received a $1 dividend per share last month, and sold the stock today for $16 per share. Tim has a marginal tax rate of 30%. Both capital gains for securities held more than one year and dividend income is taxed at 15%. What is Tim's after-tax holding period return?


A) 14.1%
B) 15.9%
C) 16.1%
D) 18.2%

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