Emily Is in the 35% Marginal Tax Bracket

question 71

Multiple Choice

Emily is in the 35% marginal tax bracket.She can purchase a York County school bond yielding 3.5% interest and the interest is not subject to a 5% state tax.But she is interested in earning a higher return
For comparable risk.Which of the following is correct:

• A)If she buys a corporate bond that pays 6% interest, her after-tax rate of return will be less than if she purchased the York County school bond.
• B)If she buys a U.S.government bond paying 5%, her after-tax rate of return will be less than if she purchased the York County school bond.
• C)If she buys a common stock paying a 4% dividend, her after-tax rate of return will be higher
• Than if she purchased the York County school bond.
• D)All of these are correct.
• E)None of these are correct.

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A disordered or chaotic state of a room where items are scattered without organization or care.

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A theory of learning that emphasizes the role of individuals in constructing their own understanding and knowledge of the world, through experiencing things and reflecting on those experiences.