Billie Fruit lives in Alberta and her income fluctuates from year to year ranging from over $320,000 to about $75,000. She has two investments of $20,000 each in shares, both achieving a return of 7 percent; one by dividend, the other by capital gain.

a-1. Calculate the higher return on an aftertax basis if this is a high income year (assume 31.71% tax on dividends and 24.00% on capital gains). (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

Return on aftertax
Dividend yield	$
Capital gains	$

a-2. What is the aftertax yield? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

Aftertax yield
Dividend yield	%
Capital gains	%

b-1. Calculate the higher return on an aftertax basis if this is a low income year (assume 7.56% tax on dividends and 15.25% on capital gains). (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

Return on aftertax
Dividend yield	$
Capital gains	$

b-2. What is the aftertax yield? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

Aftertax yield
Dividend yield	%
Capital gains	%