Chapter 15 Solutions

Chapter 15 Solutions - $795 b. $2,000 / 215 = $9.30 c....

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Chapter 15 Solutions 1) a. $13.25 –10.00 = 3.25 therefore 3.25 / 10.00 = 32.5 percent b. $3.25 x 100 = $325 c. $325 x 0.25 = $81.25 d. Cannot determine with the information given. Mike would have to pay 25 percent of the reinvested dividends, but he would not have to pay taxes on the capital gains until the mutual funds shares are sold, and the gain is realized. 2) a. $13.25 x 60 =
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Unformatted text preview: $795 b. $2,000 / 215 = $9.30 c. $9.30 x 60 = $558 d. $795 $558 = $237 (Although technically some of the appreciation is due to reinvested dividends according to the questionso she shouldnt pay tax again on dividend income that had been taxed previously.) e. No income taxes will be incurred until Jane removes the funds from her retirement account....
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This note was uploaded on 08/27/2008 for the course FIN 200 taught by Professor Delcorral during the Spring '08 term at Loyola New Orleans.

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