Saturday, 2 May 2015

You are considering three stocks with the following expected dividend yields and capital gains:

You are considering three stocks with the following expected dividend yields and capital gains:

DIVIDEND YIELD CAPITAL GAIN

A 14% 0%

B 8% 6%

C 0 14%

A) What is the expected return on each stock?

B) How many transactions costs and capital gains taxes affect your choices among the three securities?



You are considering three stocks with the following expected dividend yields and capital gains:

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