Question
Jill Clark invested $25,750 in the bonds of IndustrialAromatics, Inc. She held them for 13months, at the end of which she sold them for $26,869.
Jill Clark invested $25,750 in the bonds of IndustrialAromatics, Inc. She held them for 13months, at the end of which she sold them for $26,869. During the period of ownership she received $1,999 interest. Calculate the pretax andafter-tax HPR onJill's investment. Assume that she is in the 28% ordinary tax bracket(federal and statecombined) and pays a 15% capital gains rate on dividends and on capital gains for holding periods longer than 12 months.
The pretax HPR %?
Theafter-tax HPR %?
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Microeconomics Principles, Problems and Policies
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
20th edition
978-0077660819, 77660811, 978-1259450242
