Question
In: Accounting
John bought 1000 shares of TrippleChocolate in 2016 for $36.5 each. TrippleChocolate's share price was increasing...
John bought 1000 shares of TrippleChocolate in 2016 for $36.5 each. TrippleChocolate's share price was increasing 10% each year since. In 2019 John sold the shares. If the capital gains tax rate is 20%, dividends are taxed at 22%, and corporate tax rate is 21%, how much cash can John pocket after the sale of shares (net of taxes)?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Megan bought 200 shares of stock at a price of $10 a share, using a margin...
Megan bought 200 shares of stock at a price of $10 a share,
using a margin loan of 30%. The maximum margin loan allowed by the
margin lender is 60%. Megan sold her shares after a year for $12 a
share. Using the information above to answer THE questions
Ignoring margin interest and trading costs, what is Megan’s
return on investor’s equity for this investment?
A. 67%.
B. 29%.
C. 14%.
D. 10%.
Ignoring margin interest and trading...
on 1 Jan 2021, John plan to buy 1000 shares of Company ABC. Those share aged...
on 1 Jan 2021, John plan to buy 1000 shares of Company ABC.
Those share aged 5 years with par value 1 million/share, with
coupon rate 12% paid every 1 january.
at those moment the discount rate 10% / year. As an investor,
what is the the most expensive purchase price for 1000 shares?
Suppose you bought 100 shares of stock at an initial price of $37 per share. The...
Suppose you bought 100 shares of stock at an initial price of
$37 per share. The stock paid a dividend of $0.28 per share during
the following year, and the share price at the end of the year was
$41. (1) What is your total dollar return on this investment? (2)
What is the percentage return on the investment?
Suppose you bought 550 shares of stock at an initial price of $50 per share. The...
Suppose you bought 550 shares of stock at an initial price of
$50 per share. The stock paid a dividend of $0.54 per share during
the following year, and the share price at the end of the year was
$45. a. Compute your total dollar return on this investment. (A
negative value should be indicated by a minus sign.) b. What is the
capital gains yield? (A negative value should be indicated by a
minus sign. Do not round intermediate...
Ivy bought some shares of stock and, over the next year, the price per share increased...
Ivy bought some shares of stock and, over the next year, the
price per share increased by 5 percent, while the price level went
up by 3%. Before taxes, Ivy experienced
a. both a nominal gain and a real gain, and Ivy paid taxes on
the nominal gain.
b. both a nominal gain and a real gain, and Ivy paid taxes only
on the real gain.
c. a nominal gain, but no real gain, and Ivy paid taxes on the...
You bought 1000 Google Shares for $400 each. You also sold call options on Google...
You bought 1000 Google Shares for $400 each. You also sold call
options on Google with a strike of $435
for $20.
a) What is the
maximum profit on your position?
b) What is the profit
on your position when the stock hits $440?
c) Draw the
profit/loss diagram for this position clearly marking the max loss
and the maximum profit
You bought 1000 Google Shares for $400 each. You also sold call options on Google...
You bought 1000 Google Shares for $400 each. You also sold call
options on Google with a strike of $435
for $20.
a) What is the
maximum profit on your position?
b) What is the profit
on your position when the stock hits $440?
c)
Draw the profit/loss diagram for
this position clearly marking the max loss and the maximum
profit.
You buy 1000 shares of GE at $24 per share.
You buy 1000 shares of GE at $24 per share.• You put up $18,000 and borrow the rest.•What is your margin?25%50%65%75%80%
The Cain Company owns 800 of the 1000 shares of the Able Company which it bought...
The Cain Company owns 800 of the 1000 shares of the Able Company
which it bought at book value.
Able Company does not pay any dividends and Cain Company uses
the initial value method to account for its investment in Able.
Information for 2016 is as follows: CAIN * ABLE
INCOME BEFORE INTEREST AND TAX $900,000 $200,000
INTEREST $100,000 $60,000
INCOME BEFORE TAXES $800,000 $140,000
TAXES 30% $240,000 $42,000
INCOME $560,000 $98,000
* UNCONSOLIDATED AMOUNTS
CAIN HAS 50,000 SHARES OF...
You bought 1000 shares of ABC stock on margin at the beginning of April 2012 at...
You bought 1000 shares of ABC stock on margin at the beginning
of April 2012 at $4.80 per share. You deposited a 50% margin which
was higher than the initial margin of 40%. The prime rate of
interest was 2.5% and your broker charged 125 basis points above
the prime rate on margin loan (assume simple interest rate). The
stock paid a cash dividend of $0.12 per share in February and
August of 2012. Your broker charged a flat fee...
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