Series 6 - Investment Company And Variable Contracts Products Representative Exam
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If a fund distributes 87% of net investment income, how much taxes must it pay on NII?
87%
A
13%
B
100%
C
Its marginal tax rate
D
Explanations
If a fund does not distribute at least 90% of its net investment income to shareholders, it must pay taxes on 100% of its net investment income.