Chapter 15 Solutions - $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

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 question—so she shouldn’t 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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