Use the Information to Answer the Following Question(s)

question 24

Multiple Choice

Use the information to answer the following question(s) .
In September 2009 a U.S. investor chooses to invest $500,000 in German equity securities at a then current spot rate of $1.30/euro. At the end of one year the spot rate is $1.35/euro.
-Refer to Instruction 17.1. At an average price of €60/share, how many shares of stock will the investor be able to purchase?

• A)8333 shares
• B)6410 shares
• C)6173 shares
• D)10,833 shares

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Definitions:

Double Taxation

The application of taxation on identical earnings, property, or monetary exchange by two distinct governmental tiers or across two separate nations.

Personal Liability

The legal obligation of an individual to fulfill or settle a debt or legal judgement from their own assets.

Informational Return

A tax document that entities use to report certain types of payments made to the IRS, like income from self-employment or dividends.

Internal Revenue Service

The U.S. federal agency responsible for administering and enforcing the tax laws and collecting taxes.