1.An investor owns 5,000 shares, which is 1% of a corporation's outstanding stock before a share repurchase. The investor did not sell any of his stock during the 25,000 share repurchase. Which of the following statements is correct? why the answer is The investor owns more than 1% of the corporation.

2.Which statement is true concerning the one-year after-tax return on the following stocks, assuming a 40% tax rate on dividends and a 20% tax rate on capital gains: Stock A is purchased for $50, offers a 5% dividend yield, and is sold for $56; Stock B is purchased for $60, offers no dividend yield, but is sold after one year for $70. why the answer is Stock B's after-tax return is higher by .73%.