2007-04-12 02:48:22 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
The other posters are right, you need more information.
It looks like you are looking for a formula.
Po = original purchase price of common stock
d = dividend paid for the year on common stock
Pf = final price of common stock at time of sale
dividend rate of return = d/Po
capital gain = Pf-Po
total rate of return = (d/Po) + (Pf-Po)/Po
2007-04-12 07:10:31 · answer #1 · answered by Ben L 3 · 0⤊ 0⤋
You really should have provided more of a context.
A few years ago I would have answered this as :Dividends are taxed at the ordinary rate and capital gains are taxed at the capital gains rate." But the tax rates on dividends have changed.
WIthout knowing more, I would insert "Realized returns" and "Unrealized returns" into the two blanks.
2007-04-12 04:17:27 · answer #2 · answered by Ranto 7 · 0⤊ 0⤋
Whether it is a small investor or a very rich person, all people move their investments into places where they make the most money. When the capital gains taxes are raised, the actual return on the investment is lowered. Therefore, the people with the most money to invest place it in investments to avoid those costs. Thus, instead of investing it in stocks and companies here in America, that money will be invested elsewhere. So, even though many people seem to despise and/or envy the rich, excess taxes will greatly influence the proportion of the investments working to fund America's economy. As far as your added information, don't you think that when someone pays 25% in taxes on a million dollar income, that the person has contributed much more greatly than a person that pays an effective tax rate of less than 15% on an income of $30,000? In other words, if one person has paid $250,000 out of $1,000,000 and the other has paid $4,500 out of $30,000, hasn't the rich person already given more than his fair share?
2016-05-18 01:03:20 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Are your dividends being reinvested?
Are the capital gains resultant of a stock sale?
2007-04-12 02:57:36 · answer #4 · answered by Peter D 7 · 0⤊ 0⤋
dividends are $krilla and capital gains are Chedda. Do your homework, son. it's called a textbook.
2007-04-12 02:52:25 · answer #5 · answered by Anonymous · 0⤊ 0⤋