Question
Hayley recently invested $42,000 in a public utility stock paying a 5 percent annual dividend. (Do not round intermediate calculations. Round your answers to the
Hayley recently invested $42,000 in a public utility stock paying a 5 percent annual dividend. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
a. If Hayley reinvests the annual dividend she receives net of any taxes owed on the dividend, how much will her investment be worth in five years if the dividends paid are qualified dividends? (Hayleys marginal income tax rate is 28 percent.)
Investmen worth when dividends are qualified $--------
b. What will her investment be worth in five years if the dividends are nonqualified?
Investmen worth when dividends are nonqualified $--------
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