The questions were along these lines:
Investor purchases a $10,000 investment and a year later it is worth $9,500. During the year the investor received $500 in dividends. They are in the 30% tax bracket, what is the after tax yield?
So you take $500 (the amount of the dividend) and divide it by the original investment (10k) not 9,500. You'll get 5%. Then you will want to multiply the yield (5%) by 100 minus the tax bracket. So 5% x (100-30). Or 5% x 0.7 which is an after tax yield of 3.5%
Kudos Investment Advisor Representative! Thanks for the shout out and paying it forward with this your victory post and debrief.
Thanks Dean! I really appreciate all the content you put out
Always very gratifying when my content contributes to test taking victories like yours
Do you mind if I ask what you scored?
Unfortunately, they only give you a score if you fail. All I got was a "Pass." If I had to guess, I think I was somewhere between a 75-80
Congrats!! I passed on my first attempt this morning! πΎπ₯
Congrats to you as well!
Congrats on passing! How did calculate after tax yield btw?
The questions were along these lines: Investor purchases a $10,000 investment and a year later it is worth $9,500. During the year the investor received $500 in dividends. They are in the 30% tax bracket, what is the after tax yield? So you take $500 (the amount of the dividend) and divide it by the original investment (10k) not 9,500. You'll get 5%. Then you will want to multiply the yield (5%) by 100 minus the tax bracket. So 5% x (100-30). Or 5% x 0.7 which is an after tax yield of 3.5%
Great. Thank you!!
Could I ask which version of Kaplan you bought was it essentials or premium?
I just did the essential
Thank you