You Own 100 Shares in Each of Two Different Companies,Ace

question 26

Multiple Choice

You own 100 shares in each of two different companies,Ace Holdings,and Beta Inc.Ace Holdings earns $6.00 per share before taxes,has a corporate tax rate of 25%,and pays out 50% of its after-tax earnings as dividends.Beta Inc.earns $4.00 per share before taxes,has a corporate tax rate of 15%,and pays out 100% of its after-tax earnings as dividends.The tax rate on dividend income is 15%.If your shares of Ace Holdings are held outside of a TFSA,and your shares of Beta Inc.are held inside a TFSA,what is the total after-tax income you receive from your dividends?

• A)$191.25
• B)$289.00
• C)$480.25
• D)$531.25
• E)$565.00

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Definitions:

Neuropsychological Tests

Standardized tasks or procedures used to measure a person's cognitive, sensory, and motor performances, aiding in the assessment of brain function.

Bender Visual-Motor Gestalt Test

A neuropsychological test in which a subject is asked to copy a set of nine simple designs and later reproduce the designs from memory.

Wechsler Adult Intelligence Scale

A standardized test designed to measure human intelligence in adults and older adolescents.

Polygraph Evidence

Information obtained from a lie detector test, used as an investigative tool or in some jurisdictions as evidence in court.