An Income Trust Has a Return of 6

question 115

Multiple Choice

An income trust has a return of 6.2 percent and it is able to redistribute the income to the unit-holders. If you are in the 32 percent tax rate, what is the equivalent after tax yield?

• A) 1.98%
• B) 3.85%
• C) 4.22%
• D) 4.49%
• E) 4.62%

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Definitions:

Mineral Source

A naturally occurring substance from which minerals can be extracted or obtained for various uses.

Potassium Chloride

A chemical compound often used as a medication or dietary supplement to treat or prevent low levels of potassium in the blood.

Pharmacodynamics

The study of how drugs affect the body, including mechanisms of action, relationships between drug concentration and effect, and side effects.

Body's Response

The ways in which the human body reacts to stimuli, injuries, or infections, often involving the immune system, hormones, and physical changes.