What is the effective dividend tax rate for buy

Assignment Help Financial Management

Reference no: EM131588622

Suppose you are a rational investor and looking at the following tax rates: Year Capital Gains Rate Ordinary Income Rate Dividend Rate 1997-2000 20% 40% 40% 2001-2002 20% 39% 39% 2003-2012 15% 35% 15% (The 2012 tax rates were revised in 2013 by the U.S. Congress, and signed into law by the President, but that is for information only). The tax rates shown are for financial assets held for one year or more. For assets held less than one year, capital gains are taxed at the ordinary income tax rate (currently 35% for the highest bracket); the same is true for dividends if the assets are held for less than 61 days. Your assignment: What is the effective dividend tax rate for a buy and hold individual investor in 2006 ? Show all of your calculations.

Reference no: EM131588622

Questions Cloud

What are potential complications that may arise : Examples of physical symptoms the client might experience when seeking treatment for substance abuse and a mental illness

Dealership as a vehicle inventory program : In Java:Create an automobile class that will be used by a dealership as a vehicle inventory program.

What was the annual rate of return during his presidency : What was the annual rate of return during his Presidency?

Discuss the advantage of symmetry : Taking advantage of symmetry, determine joint displacements and axial forces in the three-bar truss shown in Figure.

What is the effective dividend tax rate for buy : Suppose you are a rational investor and looking at the following tax rates. What is the effective dividend tax rate for buy and hold individual investor in 2006

Select and share two quotations from two different articles : Select and share two quotations from two different articles that you found meaningful, interesting, or challenging.

Schedule and test plan covered in the reading : Details of the schedule and test plan covered in the reading. The deliverables that will be provided at the end of the testing process.

How stress affects cognitive functions : Provide a brief explanation of how stress affects cognitive functions, including the roles of the amygdala and the prefrontal cortex.

Establishing an ethical physician-patient relationship : Summarize the importance that a living will plays in establishing an ethical physician-patient relationship.

User Account

All Pages