Georges Bizet owns 10,000 shares of Pearl Co. purchased at an average price of $15 per share. The tax rate on both dividends and capital gains is 15%. Would Bizet prefer a $2.00 per share dividend or to sell 1,000 shares back to the company at $20 per share? Compute his after-tax income from each option.

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The Answer of Georges Bizet owns 10,000 shares of Pearl Co. purchased at an average price of $15 per share. The tax rate on both dividends and capital gains is 15%. Would Bizet prefer a $2.00 per share dividend or to sell 1,000 shares back to the company at $20 per share? Compute his after-tax income from each option.

Georges Bizet Owns 10,000 Shares of Pearl Co