Hayley recently invested $27,000 in a public utility stock paying a 5 percent annual dividend. (Hayleys marginal income tax rate is 32 percent and preferential
Hayley recently invested $27,000 in a public utility stock paying a 5 percent annual dividend. (Hayleys marginal income tax rate is 32 percent and preferential tax rate is 15 percent.) If Hayley reinvests the annual dividend she receives net of any taxes owed on the dividend, how much will her investment be worth in six years if the dividends paid are qualified dividends? What will her investment be worth in six years if the dividends are nonqualified? (For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar amount.)
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