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Maria purchased $5,000 of noload mutual fund shares just over a year ago. She received $136 in dividend income and $201 in longterm capital gains
Maria purchased $5,000 of noload mutual fund shares just over a year ago. She received $136 in dividend income and $201 in longterm capital gains distributions. Today she sold her shares for $5,062. Maria is in the 25% marginal tax bracket. Capital gains with holding periods in excess of one year and dividend income are taxed at 15%. What is Maria's
aftertax holding period return?
A.
6.6%
B.
8.0%
C.
6.0%
D.
6.8%
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