Susan Brown Has Decided That She Would Like to Go

question 10

Essay

Susan Brown has decided that she would like to go back to school after her kids leave home in five years.To save for her education,Susan would like to invest $25,000 in an investment that provides a high return.If her marginal tax rate is 35 percent,what is Susan's after-tax rate of return for the following investment options? Qualified dividends are taxed at 15 percent.
(1)Corporate bond issued at face value with 10 percent stated interest rate payable annually.
(2)Dividend-paying stock with an annual qualifying dividend equal to 10% of her investment.
(3)Growth stock with an annual growth rate of 8 percent and no dividends paid.(Round your interim calculations to the nearest whole number)

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Definitions:

Successful Intelligence

A theory that defines intelligence as the integration of analytical, creative, and practical abilities to achieve success according to one's personal goals and cultural context.

Robert Sternberg

An American psychologist and psychometrician known for his theory on intelligence and creativity, as well as Sternberg's Triangular Theory of Love.

Howard Gardner

An American developmental psychologist best known for his theory of multiple intelligences, which suggests people have several distinct types of intelligence.

Social

Pertaining to the relationships and interactions between individuals and groups within a society, as well as the societal structures and dynamics that influence human behavior.