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:

Germinal Center

A region within lymph nodes where mature B cells proliferate, differentiate, and mutate their antibody genes during an immune response.

Efferent Vessel

An efferent vessel is a lymphatic or blood vessel that carries fluid away from an organ or tissue, opposite to an afferent vessel which brings fluid to it.

Afferent Vessel

A vessel that carries blood or lymph fluid towards a particular tissue or organ in the body.

Lymphoid Organ

Lymphoid organs, including the lymph nodes, spleen, and thymus, are part of the immune system and play a role in producing, storing, and carrying white blood cells.