his MTR is 41%, so he would like you to demonstrate to him how different...

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Finance

his MTR is 41%, so he would like you to demonstrate to him how different types of investment incomes are taxed differently. Calculate the after-tax percentage return that each investment would produce.

  • A preferred stock of a Canadian public company that will pay a 5.0% dividend over the next year
  • A GIC that will pay 5.30% interest over the next year
  • A Canadian public company common share that does not pay a dividend, but is expected to realize a 4.0% increase in market value over the next year
  • A Canadian equity mutual fund that will pay a 1.5% dividend and is also expected to realize a 2.75% increase in its NAVPS over the next year

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