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Mr. Wiser is contemplating investing in two different mutual funds. His investment options are set IT511R out below. Amount Mutual Fund Distribution $100,000 International Income
Mr. Wiser is contemplating investing in two different mutual funds. His investment options are set IT511R out below. Amount Mutual Fund Distribution $100,000 International Income Fund Annual interest of 8.0% $100,000 Canadian Dividend Fund Annual dividend of 6.0% Mr. Wiser contemplates holding both mutual funds for the same period of time from purchase to December 31, 2025. Mr. Wiser is in the top federal income tax bracket (33%). Mr. Wisers provincial tax on income rate is 20%. Assume that the combined federal and provincial dividend tax credit is equal to the dividend gross-up. Assume that the Canadian Dividend Fund receives and distributes dividends from Canadian-resident public corporations. REQUIRED (A) Based on the above information
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