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answer question b please. You purchased CSH stock for $40 and it is now selling for $50. The company has announced that it plans a
answer question b please.
You purchased CSH stock for $40 and it is now selling for $50. The company has announced that it plans a $10 special dividend. a. Assuming 2010 tax rates of 15% on dividends and capital gains, if you sell the stock or wait and receive the dividend, will you have different after-tax income? b. Assuming the capital gains tax rate is 20% and the dividend tax rate is 42%, if you sell the stock or wait and receive the dividend, will you have different after-tax income? If the after-tax income is different, why? a. Assuming 2010 tax rates of 15% on dividends and capital gains, if you sell the stock or wait and receive the dividend, will you have different after-tax income? (Select from the drop-down menu.) Assuming 2010 tax rates are 15% on capital gain and 15% on dividends, if you sell the stock or wait and receive the dividend, you will not have different after-tax income. b. Assuming the capital gains tax rate is 20% and the dividend tax rate is 42%, if you sell the stock or wait and receive the dividend, will you have different after-tax income? If the after-tax income is different, why? (Select from the drop-down menu.) e a difference between the two options and If the capital gains tax rate is 20% and the dividend tax rate is 42%, then there the difference will be $ . (Round to the nearest cent.)Step by Step Solution
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