Question 1
Since 2003, most dividends are taxed
◦ at a higher rate than capital gains.
◦ at a lower rate than capital gains.
◦ at the same rate as ordinary income.
◦ at the same rate as capital gains.
Question 2
The common shares of the Chevrotin Ltd have a book value of $43.20 and a market value of $57.20 The company pays $0.56 in dividends each quarter. What is the dividend yield?
◦ 1.0%
◦ 1.3%
◦ 3.9%
◦ 5.2%