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This problem compares the aftertax income on a $35,000 investment for the following two investors resident in Ontario and two possible investments. Table 2-13 will
This problem compares the aftertax income on a $35,000 investment for the following two investors resident in Ontario and two possible investments. Table 2-13 will be of assistance. Rudy Hill earns within the mid marginal tax bracket. This is his only investment. Grace Valley is in the top marginal tax bracket. This is her only investment. Investment A provides $2,800 in dividends and no capital gains. Investment B provides no dividends but $2,800 of capital gains. a. Calculate the aftertax return for Hill in Investment A and Investment B. (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)
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