Hello All, I have a query in Question 10 Page 40. In the solution given, while calculating total pre-tax return we have used net US dollar dividends without adjusting for commissions paid i.e. used the value 3220 instead of 2737. while calculating total after-tax return we have used net US dollar dividends after adjusting for commissions i.e. used the value 2737 instead of 3220. Can anyone please explain as to why different values have been used. Thanks and Regards
I don’t think you pay comissions on dividends.
while calculating pre tax returns we have not considered commissions. while calculating post tax returns we have considered commissions. this sounds strange to me.
IIM, The Diff between 3220 and 2737 is withholding tax not commissions.