You hold some shares of BMW listed in Frankfurt The share price is 750, and a gross dividend of 30 is paid The current exchange rate is 1 15 $ The German government imposes a 15 withholding tax on dividends paid to U S investors Your marginal tax rate is 30 a What dividend per share will you receiv...

a The dividend per share is 30 on which 15 is withheld The net dividend per share is therefore 2 ...

You hold some shares of BMW listed in Frankfurt. The share price is 750, and a

Question:

You hold some shares of BMW listed in Frankfurt. The share price is € 750, and a gross of € 30 is paid. The current is 1.15 $/ € . The German government imposes a 15% withholding tax on dividends paid to U.S. investors. Your marginal tax rate is 30%. a. What per share will you receive in U.S. dollars? b. What tax will you have to pay to the U.S. government on the received?
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... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...