Susan Brown Has Decided That She Would Like to Go

question 107

Essay

Susan Brown has decided that she would like to go back to school after her kids leave home in five years.To save for her education,Susan would like to invest $25,000 in an investment that provides a high return.If her marginal tax rate is 35 percent,what is Susan's after-tax rate of return for the following investment options? Qualified dividends are taxed at 15 percent.(Round your interim calculations to the nearest whole number)
(1)Corporate bond issued at face value with 10 percent stated interest rate payable annually.
(2)Dividend-paying stock with an annual qualifying dividend equal to 10% of her investment.
(3)Growth stock with an annual growth rate of 8 percent and no dividends paid.

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Definitions:

Institutional Discrimination

Unfair and inequitable treatment of individuals or groups that is embedded within the policies, practices, or laws of organizations or social institutions.

Symbolic Racism

A form of racism that is expressed through indirect symbols or coded language rather than overtly discriminatory actions or policies.

Implicit Association Test (IAT)

A psychological test designed to uncover subconscious biases or associations between different concepts, including race, gender, and other traits.

Attitudes

The settled ways of thinking or feeling about someone or something, typically reflected in a person's behavior.