You Own 100 Shares in Each of Two Different Companies,Ace

question 26

Multiple Choice

You own 100 shares in each of two different companies,Ace Holdings,and Beta Inc.Ace Holdings earns $6.00 per share before taxes,has a corporate tax rate of 25%,and pays out 50% of its after-tax earnings as dividends.Beta Inc.earns $4.00 per share before taxes,has a corporate tax rate of 15%,and pays out 100% of its after-tax earnings as dividends.The tax rate on dividend income is 15%.If your shares of Ace Holdings are held outside of a TFSA,and your shares of Beta Inc.are held inside a TFSA,what is the total after-tax income you receive from your dividends?

• A)$191.25
• B)$289.00
• C)$480.25
• D)$531.25
• E)$565.00

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Hospice Movement

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