You hold some shares of BMW listed in Frankfurt. The share price is €750, and a gross dividend
of €30 is paid. The current exchange rate is 1.15 $/€. The German government imposes a 15% withholding tax on dividends paid to U.S. investors. Your marginal tax rate is 30%.
a. What dividend per share will you receive in U.S. dollars?
b. What tax will you have to pay to the U.S. government on the dividend received?

Question

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The Answer of You hold some shares of BMW listed in Frankfurt. The share price is €750, and a gross dividend
of €30 is paid. The current exchange rate is 1.15 $/€. The German government imposes a 15% withholding tax on dividends paid to U.S. investors. Your marginal tax rate is 30%.
a. What dividend per share will you receive in U.S. dollars?
b. What tax will you have to pay to the U.S. government on the dividend received?

You Hold Some Shares of BMW Listed in Frankfurt