One Year Ago,you Purchased a Stock at a Price of £32.50.The

question 25

Multiple Choice

One year ago,you purchased a stock at a price of £32.50.The equity pays quarterly dividends of £.40 per share.Today,the shares are worth £34.60.What is the total amount of your dividend income to date from this investment?

• A)£0.40
• B)£1.60
• C)£2.10
• D)£2.50
• E)£3.70

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Definitions:

Income Tax

A charge imposed by authorities on the earnings of individuals and enterprises operating within their territory.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating how much of an additional dollar earned will be taken in taxes.

Average Tax Rate

The proportion of total income that is paid as tax, calculated by dividing the total amount of tax paid by the total income.

Income Tax Liability

The total amount of income tax that an individual or corporation owes to the government, based on their taxable income.