If Jim Invested $100,000 in an Annual Dividend-Paying Stock Today

question 89

Multiple Choice

If Jim invested $100,000 in an annual dividend-paying stock today with a 7 percent return, what investment time period will give Jim the greatest after-tax return?

• A)1 year
• B)5 years
• C)10 years
• D)20 years
• E)All yield the same after-tax return.

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Definitions:

Altered Check

A check that has been tampered with after its original issuance, such as changing the amount payable.

Properly Payable

Refers to funds that a bank must legally disburse in accordance with the directives on a check or draft presented.

Date

A specific point in time, typically described with a day, month, and year.

Payee Name

The name of the individual or entity entitled to receive payment as indicated on a financial instrument, like a check or wire transfer.