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One year return on Target stock purchase

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You bought 100 shares of Target Corporation for $48 each and sold it a year later for $54. Assume total brokerage commission of $16, dividends of 50 cents per share, and 20% tax on dividends and 20% tax on capital gain. (a) What is your one-year return in (a) $ and (b) %?

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Solution Summary

Calculation of one year return on stock investment.

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Income from the sale of each share of stock $6. So total income is $600 ...

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