The Effective Dividend Tax Rate for a Pension Fund in 2006

question 19

Multiple Choice

The effective dividend tax rate for a pension fund in 2006 is closest to:

• A)20%
• B)0%
• C)25%
• D)15%

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Definitions:

Capital Stock

The general term applied to the shares of a corporation.

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock.

Capital Stock

The total amount of shares that a corporation is authorized to issue, as represented in its financial statements.

Commission Charges

Fees paid for services, usually a percentage of the transaction made or handled by a service provider.