Question $29$

You are living in a country where stocks may be purchased with no transactions costs. You

own $5,000$ shares of Apple Inc, which has just announced that it will not pay any dividends

this year. You are concerned because you would like to have received dividends of $$2$ per

share $($before taxes$).$ You purchased Apple stock for $$8$ per share a few months ago. The price

today is $$12$ per share. How many shares should you sell today to obtain the after$-$tax

dividend proceeds that you wanted? Assume that taxes on capital gains are $30\%$ and taxes on

dividend income are $25\%.$

$589$

Correct answer is not available

$625$

$694$

$731$