Question
By law, REITs are required to distribute 90% of their pretax income to shareholders. REITs are not taxable but shareholders are. If a REIT pays
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By law, REITs are required to distribute 90% of their pretax income to shareholders. REITs are not taxable but shareholders are. If a REIT pays out a dividend of $500, and the shareholder has a tax rate of 40%, what share of the dividend does the shareholder have to pay in taxes?
| $200 | ||
| 300 | ||
| $500 | ||
| None |
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
9th Edition
032431986X, 9780324319866
