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Iris pays 15% in dividends and capital gains taxes and 35% in ordinary income taxes.

Several years ago, she purchased a Mortgage-Backed Security (MBS) for $20,000which was the par value of the underlying assets. At the end of this year, she receiveda statement stating she had received $700 in scheduled amortization of principal,$1,200 in interest, and $500 in unscheduled collection of principal. What is Iriss after-tax cash flow this year from this investment?

8 Before the new tax law enacted in 2003, dividends were taxed as ordinary income. Now the maximum tax rate on dividends paid to individuals is 15%. As a result of the law, an investor in the 25% tax bracket who received $70,000 in qualifying dividends had atax savings of?

10 Corey pays 15% in dividend and capital gains taxes and 35% in ordinary income taxes. Four years ago, she invested $500,000 in a private placement offering with some friends. The initial price was $50 a share. The investment group is now discussing the possibility of publicly selling their shares. One of the members of the group believes they could get at least $75 a share. If this is correct, what are Coreys taxes when she sells her shares (ignoring commissions and fees)?

15 A $1,000 par 1.4% coupon convertible bond with a stock purchase warrant for 1 share of stock at $35 per share is purchased for $900. The common stock has a current market price of $38 per share and the warrants market price is $4. If the market price of the stock increases to $41.80, the minimum percentage increase in the value of the warrant is?