Hayley recently invested $50,000 in a public utility stock paying a 3 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 four years if the dividends paid are qualified dividends? (Hayleys marginal income tax rate is 28 percent.)

investments worth when dividends are qualified _______________

b. What will her investment be worth in four years if the dividends are nonqualified? investments worth when dividends are nonqualified _______________