Use the Information for the Question(s)below

question 90

Multiple Choice

Use the information for the question(s) below.
Consider the following tax rates:
*The current tax rates are set to expire in 2010 unless Congress extends them.The tax rates shown are for financial assets held for one year.For assets held less than one year,capital gains are taxed at the ordinary income tax rate (currently 35% for the highest bracket) ;the same is true for dividends if the assets are held for less than 61 days.
-In 2006,Luther Incorporated paid a special dividend of $5 per share for the 100 million shares outstanding.If Luther has instead retained that cash permanently and invested it into Treasury bills earning 6%,then the present value (PV) of the additional taxes paid by Luther would be closest to:

• A)$35 million
• B)$290 million
• C)$175 million
• D)$585 million

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Definitions:

Symptomatic Behavior

Actions or expressions that are manifestations of an underlying problem, condition, or disorder.

Structural Therapy

A type of family therapy that focuses on adjusting and strengthening the family system to ensure that appropriate hierarchies and boundaries are maintained.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning and learning.

Controlled Outcome Research

Research designed to evaluate the effectiveness of a treatment or intervention by comparing outcomes between a group receiving the intervention and a control group.