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?

View Solution:

Sale on SolutionInn
  • CreatedMarch 26, 2015
  • Files Included
Post your question