Best describe qualified dividends

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Reference no: EM131836755

1. Which of the following best describe qualified dividends?

Dividend distributions that are considered a return of capital

Ordinary dividends that are subject to the same maximum tax rate that applies to net capital gain

Dividends that may be used to purchase additional shares in a corporation.

Dividends that are distributed when a corporation issues an additional amount of stock, usually as a percentage of the current share owned by the taxpayer

2. The yield to maturity on a bond is the rate:

computed as annual interest divided by the bond's market price.

an investor earns if the bond is sold prior to the maturity date.

of annual interest initially offered when the bond was issued.

of return currently required by the market. of annual interest paid on the bond.

Reference no: EM131836755

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