1. You own shares in a Spanish company that has just paid you a dividend of 3,000 Euros. What Canadian tax will you owe on this dividend? (Assumptions dividend gross-up of 38%, dividend tax credit of 15%, Spanish withholding tax of 15%, 1 Euro = Canadian $1.50, your marginal tax rate is 30%) a) $1,350.00 ) Ob) $1,188.00 O c) $908.55 d) $675.00 Which of the following statements is true with respect to portfolio management? 1. Combining two positively correlated securities will reduce portfolio risk II. The maximum benefit from diversification can be achieved with a portfolio of as few as 32 diversified securities. III. Purchasing gold and gold mining stocks for the same portfolio will not provide diversification IV. Diversification cannot reduce systematic risk, only non-systematic risk a) I and II b) I, II, III and IV Oc) III and IV d) II and III Mary Moneypenny is an Investment Advisor for a Canadian Investment Dealer firm. On Tuesday Ms. Moneypenny visits a client and discusses an IPO her firm is underwriting. At the end of the meeting, her client agrees to purchase 500 shares at the $20 offer price. Ms. Moneypenny accepts the cheque and leaves the prospectus with her client. On Friday, her client calls and asks to cancel the order as he believes the forecasts in the IPO are too optimistic. Ms. Moneypenny: a) is legally obligated to cancel the order due to the right of Rescission rule. b) is legally obligated to cancel due to both the Withdrawal and Rescission rules. c) is under no legal obligation to cancel the order because the client waited too long to notify her. d) is legally obligated to cancel the order due to the Right of Withdrawal rule. An investor is in a 29% marginal tax bracket, and receives $200 in dividends from a Canadian corporation. How much tax must they pay on the dividend? (Assume a 38% gross-up, the dividend tax credit is 25% and the foreign withholding tax is 15%). a) $11.04 Ob) $0 Oc) None of the other answers is correct. d) $80.04