Sam Sharp purchased 100 shares of Electric Lighting Inc. (ELI) one year ago for $60 per share. He also received cash dividends totaling $5 per share over the past twelve months. Now that ELI’s stock...

Sam Sharp purchased 100 shares of Electric Lighting Inc. (ELI) one year ago for $60 per share. He also received cash dividends totaling $5 per share over the past twelve months. Now that ELI’s stock price has increased to $64.50 per share, Sam has decided to sell his holdings. What is Sam’s gross (pre-tax) and net (after-tax) return on this investment, assuming that he faces a 15 percent tax rate on dividends and capital gains? THOMSON ONE Business School Edition For instructions on using Thomson ONE, refer to the instructions provided with the Thomson ONE problems at the end of Chapters 1–6 or to “A Guide for Using Thomson ONE.”