Maria Purchased $5,000 of No-Load Mutual Fund Shares Just Over

question 107

Multiple Choice

Maria purchased $5,000 of no-load mutual fund shares just over a year ago. She received $136 in dividend income and $201 in long-term capital gains distributions. Today she sold her shares for $5,062. Maria is in the 25% marginal tax bracket. Capital gains with holding periods in excess of one year and dividend income are taxed at 15%. What is Maria's after-tax holding period return?

• A) 6.0%
• B) 6.6%
• C) 6.8%
• D) 8.0%

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Definitions:

Axon

A part of the neuron that transmits electrical impulses away from the neuron's cell body to other neurons, muscles, or glands.

Nucleus

The central part of an atom containing protons and neutrons, or a membrane-bound organelle in eukaryotic cells that contains the genetic material.

Dendrite Metaphor

A figurative expression comparing the branching structure of dendrites in neurons to various network or tree-like structures in different contexts.

Vacuum Cleaner

An electrical appliance that uses suction to remove debris from floors, upholstery, and other surfaces.