Use the Information for the Question(s)below

question 20

Multiple Choice

Use the information for the question(s) below.
Consider the following tax rates:

-In 2006,Luther Incorporated paid a special dividend of $5 per share for the 1 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)$2.90 million
• C)$1.75 million
• D)$5.85 million
• E)$3.25 million

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Definitions:

Derived Class

A class that inherits attributes and methods from a base class, also known as a subclass.

Base Classes

In object-oriented programming, classes that act as a foundation from which other classes (derived or child classes) can be created through inheritance.