Question: Investor A recognizes 100 in dividend income that is taxed
Investor A recognizes $100 in dividend 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?
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