Aminah owns 1,000 shares of a firm that has just announced an increase in its dividend from $2.00 to $2.50 a share. The share price is currently $150. If Aminah does not wish to spend the extra cash, what should he do to offset the dividend increase?

Oliver owns shares of a mutual fund. During the year, he received $2,200 in dividend distributions, $500 of which he immediately spent on travel and entertainment. He elected to use the remaining $1,700 to purchase additional shares of the fund. What amount of Oliver's dividend income is subject to tax for that year? $0 $500 $1,700 $2,200

What It Means to Invest in Stocks? Common stock is considered to be one of the most popular investment vehicles for long-term wealth building. Investors earn income from common stock in the form of dividends and/or capital gains. As an investor it is important to understand the implications of investing in stocks from a tax perspective. Two years ago, Felix purchased 100 shares of a particular company's stock at a price of $114.44 per share. Last year, Felix received an annual dividend of $1.95 per share, and at the end of the year, a share of stock was trading at $120.83 per share. This year, Felix received an annual dividend of $2.15 per share and afterward sold all 100 shares at a price of $131.04 per share. In the first column of the following table, enter the total annual dividends Felix received each year, as well as the total capital gains at the end of each year. Suppose Felix is in the 28% tax bracket. Compute the taxes Felix pays each year on dividends and capital gains from…

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