Maria Purchased $5,000 of No-Load Mutual Fund Shares Just Over

question 107

Multiple Choice

Maria purchased $5,000 of no-load mutual fund shares just over a year ago. She received $136 in dividend income and $201 in long-term capital gains distributions. Today she sold her shares for $5,062. Maria is in the 25% marginal tax bracket. Capital gains with holding periods in excess of one year and dividend income are taxed at 15%. What is Maria's after-tax holding period return?

• A) 6.0%
• B) 6.6%
• C) 6.8%
• D) 8.0%

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