A Stock Is Bought for $22

question 116

Multiple Choice

A stock is bought for $22.00 and sold for $26.00 one year later,immediately after it has paid a dividend of $1.50.What is the capital gain rate for this transaction?

• A)0.27%
• B)4.00%
• C)15.00%
• D)18.18%
• E)20.00%

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Definitions:

Negligence

The failure to exercise the level of care that a reasonably prudent person would in similar circumstances, leading to harm or damage.

Fraud

A deliberate deception practiced to secure unfair or unlawful gains.

Detect Fraud

The process of identifying false or misleading information, typically to gain a financial advantage.

Misrepresentations

False statements or lies that can affect the terms of a contract or agreement, and may lead to legal action if they cause harm or damage.