Investor A recognizes $100 in dividend income that is taxed at a rate of 20%. Investor B

Question:

Investor A recognizes $100 in income that is taxed at a rate of 20%. Investor B also wants to recognize the same after-tax revenue as investor A, but investor B owns stock that does not pay dividends. If investor B’s stock sells for $12 a share (originally purchased for $7 a share) and if the capital gains tax is 40%, then how many shares must investor B sell?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...