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HPE2-N68 real exams

Exam Code: HPE2-N68

Exam Name: Using HPE Containers

Version: V12.55

Q & A: 77 Questions and Answers

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NEW QUESTION: 1
Congress considered a tax plan that would reduce capital gains tax rates from the existing levels. The current maximum capital gains rate is 28 percent compared with a maximum rate of 31 percent for ordinary personal income. With this tax bill, which of the following statements is least correct for an investor in a high personal tax bracket?
A. All of these statements are correct.
B. One of the companies in the investor's portfolio recently announced that it will embark on a stock repurchase plan. The lower capital gains tax rate will reduce the investor's taxes if he/she decides to tender some shares of stock in the company.
C. None of these statements are correct.
D. A 2-for-1 stock split is announced for a stock that the investor currently holds. The company had split the stock because the stock price had increased beyond the desired price range and is expected to continue to grow. This is good news to the investor because it means that any gains from increased stock value will be taxed at a new lower capital gains rate when the stock is sold.
E. The stock of a company that pays high cash dividends and has a dividend reinvestment plan (DRIP) is a good investment for this individual because he/she will receive more money that can then be reinvested in the company's stock.
Answer: E
Explanation:
Explanation/Reference:
Explanation:
In a dividend reinvestment plan, the stockholder must pay taxes on the dividend amount, even though stock and not cash has been received.

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