Maria purchased $5,000 of no-load mutual fund shares just over a year ago. She received $136 in dividend income and $201 in long-term capital gains distributions. Today she sold her shares for $5,062
Maria is in the 25% marginal tax bracket. Capital gains with holding periods in excess of one year and dividend income are taxed at 15%. What is Maria's after-tax holding period return?
A) 6.0%
B) 6.6%
C) 6.8%
D) 8.0%
Answer: C
You might also like to view...
Bossidy and Charan believe that to excel at execution, a leader should
A. be hands-off once the strategy is set. B. micromanage the tactics. C. empower employees to take over the execution. D. probe for weaknesses in the substance and details. E. let the plan run its course before attempting to revise it.
What is the problem with using the original LTV to assess the likelihood that a seasoned mortgage will default?
What will be an ideal response?
Joe Swartz, an employee of Acme Company, worked for months during company time and used Acme's equipment to develop an idea that he had been nurturing. Finally, the idea came to fruition. Swartz's employer laid claim to the invention on the grounds that
the firm's equipment had been utilized on company time. Swartz had obtained a patent on the invention and claimed that his employer had no rights to the invention at all. Who is right? How could an employer guard against such arguments in the future?
Impact fees can be assessed even when there is no reason given for their need
Indicate whether the statement is true or false