How much tax must you pay on holdings

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Question 1: You hold 1,000 units of Calgary Commercial Property, a real estate investment trust (REIT). The REIT announces a profit of $10 per share, of which it retains $4 for reinvestment and distributes the rest as dividend payments. Given your personal tax rate of 40%, and the tax rate on dividends is 15%, how much tax must you pay on your holdings?

Reference no: EM132531868

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