Use the Information for the Question(s)below

question 86

Essay

Use the information for the question(s)below.
Consider the following tax rates: *The current tax rates are set to expire after 2025 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 37% for the highest bracket);the same is true for dividends if the assets are held for less than 61 days.
-Using the available tax information for 2002,calculate the effective dividend tax rate for a:
(1)one-year individual investor
(2)buy and hold individual investor
(3)pension fund

---

Definitions:

Toner

A powder used in laser printers and photocopiers to form the printed text and images on paper.

Volatile

In computing, it refers to memory that requires power to maintain the stored information; it loses its content when the power is turned off.

Storage Location

A specific area in memory or on a storage device where data is kept.

RAM

Random Access Memory, a type of computer memory that can be accessed randomly and is used for storing working data and machine code.