QUESTION $24$

By law, REITs are required to distribute $90\%$ of their pretax income to shareholders. REITs are not taxable but shareholders are. If a REIT pays out a dividend of $$500,$ and the shareholder has a combined federal and state tax rate of $40\%,$ what share of the dividend does the investor get to keep after taxes?

$$200$

$$300$

$$500$

None