Juan recently started operating a flower shop as a proprietorship. in its first year of operations, the shop had a taxable income of $60,000. assuming that juan had no other employment-related earnings,

a) the flower shop must withhold fica taxes from juan's earnings.
b) juan must pay self-employment tax on the earnings of the business.
c) juan will be exempt from self-employment taxes for the first three years of operations.
d) juan will be exempt from the medicare tax because the business earnings are below the threshold amount.

An investor purchases 500 shares of nevada industries common stock for $22.00 per share today. at t = 1 year, this investor receives a $0.42 per share dividend (which is not reinvested) on the 500 shares and purchases an additional 500 shares for $24.75 per share. at t = 2 years, he receives another $0.42 (not reinvested) per share dividend on 1,000 shares and purchases 600 more shares for $31.25 per share. at t = 3 years, he sells 1,000 of the shares for $35.50 per share and the remaining 600 shares at $36.00 per share, but receives no dividends. assuming no commissions or taxes, the money-weighted rate of return received on this investment is closest to: