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Five years ago, Kate purchased a dividend-paying stock for $25,000. For all five years, the stock paid an annual dividend of 4 percent before tax

Five years ago, Kate purchased a dividend-paying stock for $25,000. For all five years, the stock paid an annual dividend of 4 percent before tax and Kates marginal tax rate was 24 percent. Every year Kate reinvested her after-tax dividends in the same stock. For the first two years of her investment, the dividends qualified for the 15 percent capital gains rate; however, for the last three years the 15 percent dividend rate was repealed and dividends were taxed at ordinary rates. What is the current value (at the beginning of year 6) of Kates investment assuming the stock has not appreciated in value? Please show work...

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