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investment income that was part of the Affordable Care Act. ) ( Note: The tax rate on dividends for the Consalvos will be 1 5
investment income that was part of the Affordable Care Act.
Note: The tax rate on dividends for the Consalvos will be and your calculations should ignore the tax on
a How many shares of the stock can the Consalvos buy?
b How much will they receive after taxes each year in dividend income if they buy the stock?
c What is the total amount they would have from their original $ if they purchased the stock and all went as planned?
d How much will they receive after taxes each year in interest if they purchase the bonds?
e What is the total amount they would have from their original $ if they purchased the bonds and all went as planned?
f Based only on your calculations and ignoring other risk factors, should they buy the stock or the bonds?
a The number of shares of the stock that the Consalvos can buy is
shares. Round to the nearest whole number.
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