Neco 2020 Commerce Question 37

Stock X is currently priced at \(\$500\) per share and pays an annual dividend of \(\$30\). After one year its market price rises to \(\$540\). Stock Y is priced at \(\$450\) and pays a dividend of \(\$25\). The dividend on both stocks is taxed at \(10\%\). Capital gains on Stock X are taxed at \(15\%\) while the capital‑gains tax rate on Stock Y is unknown. It is known that the capital gain on Stock Y (before tax) is twice the capital gain on Stock X (before tax). If the after‑tax total return on Stock X equals the after‑tax total return on Stock Y, determine (i) the capital‑gains tax rate (as a percentage, rounded to the nearest whole percent) applicable to Stock Y and (ii) the market price of Stock Y after one year.