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Q #5 (8 Marks) You have recently won $100,000 in a lottery and are currently trying to decide whether or not to invest the money

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Q #5 (8 Marks) You have recently won $100,000 in a lottery and are currently trying to decide whether or not to invest the money into preferred shares of Z Ltd., a Canadian company, which have a dividend yield of 6% and are currently selling at $40. You anticipate the preferred shares will be selling at $44 at the end of the year. Applicable federal and provincial tax rates are 29% and 11.16% respectively. Required: If you purchase the shares, what will be your expected after tax rate of return from the investment for the first year after you sell the shares

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