An investment is made of $10,000. At the end of the year, $500 in dividends has been received and the value of the investment is $10,500. If the investor is in the 30% tax bracket, the after-tax yield is:

An investment is made of $10,000. At the end of the year, $500 in dividends has been received and the value of the investment is $10,500. If the investor is in the 30% tax bracket, the after-tax yield is:



A) 5.0%

B) 3.5%

C) 8.5%

D) 6.5%



Answer: B


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