Answer:
KSU Corporation | ||
Particulars | Year 1 | Year 2 |
Shares | 100.00 | 100.00 |
Purchase price/ share | 37.00 | 45.00 |
Amount | 3700.00 | 4500.00 |
Dividend/ share | 0.00 | 0.50 |
Dividend amount | 0.00 | 22.50 |
Total Amount | 3700.00 | 4522.50 |
Profit before tax | 822.50 | |
Tax 25% | 205.63 | |
Profit after tax | 616.88 | |
. T-Mobile 4:25 PM 453% Aa 10 a 3. After reading this chapter, it isn't sur-...
After reading this chapter, it isn't surprising that you're becoming an investment wizard. With your newfound expertise you purchase 100 shares of KSU Corporation for $42.39 per share. Over the next 12 months assume the price goes up to $51.55 per share, and you receive a qualified dividend of $0.54 per share. What would be your total return on your KSU Corporation investment? Assuming you continue to hold the stock, calculate your after-tax return. How is your realized after-tax return...
After reading this chapter, it isn't surprising that you're becoming an investment wizard. With your newfound expertise, you purchase 100 shares of KSU Corporation for $44.51 per share. Assume the price goes up to $57.41 per share over the next 12 months and you receive a qualified dividend of $0.51 per share. What would be your total return on your KSU Corporation investment? Assuming you continue to hold the stock, calculate your after-tax return. How is your realized after-tax return...
T-Mobile 4:25 PM 7 53% Aa Q Problems and Activities These problems are available in My Lab Fi- nance 1. Everyone needs an emergency fund. Assume your best friend asks you to evaluate a list of investments for an emergency savings fund. Comment on the appropriateness of each of the following: a. Certificate of deposit b. Three-month Treasury bills c. Gold and silver coins d. Portfolio of energy stocks e. Money market mutual fund
Suppose that you invest $170 per month (before taxes) for 25 years (300 payments) and the annual interest rate (APR) is 7%, compounded monthly. If your income tax bracket is 32%, what lump sum, after-tax distribution can be taken at the end of 25 years? $ can be taken at the end of 25 years after-tax distribution. (Round to the nearest dollar.) Nowadays it is very important to reduce one's carbon "footprint" (how much carbon we produce in our daily...
ABC Clothing has after-tax income of $15.4 million. It also has 36 million shares of stock outstanding. What is the firm's earnings per share? Multiple Choice $1.54 a share $3.60 a share $0.86 a share $0.43 a share $5.14 a share Last year, a firm earned $3.20 per share. If the current market value for a share of stock is $47, what is the firm's PE ratio? Multiple Choice 0.07 6.81 14.69 21.50 It is impossible to calculate a PE...
After the sale of the stock on December 2nd, 2018, your cost basis per share is closest to: a. $27.50 b. $28.16 c. $29.29 d. $50.83 e. $52.50 Use the following information from questions 6-12. In both 2018 and 2019 you expect to receive a W2 for $200,000; $65,000 will be already withheld on your W2 for federal income taxes and your income tax bracket is 32%. The short term capital gains on investments (<1 year) are taxed like income,...
After the sale of the stock on December 2nd, 2018, your cost basis per share is closest to: a. $27.50 b. $28.16 c. $29.29 d. $50.83 e. $52.50 Use the following information from questions 6-12. In both 2018 and 2019 you expect to receive a W2 for $200,000; $65,000 will be already withheld on your W2 for federal income taxes and your income tax bracket is 32%. The short term capital gains on investments (<1 year) are taxed like income,...
After the sale of the stock on December 2nd, 2018, your cost basis per share is closest to: a. $27.50 b. $28.16 c. $29.29 d. $50.83 e. $52.50 Use the following information from questions 6-12. In both 2018 and 2019 you expect to receive a W2 for $200,000; $65,000 will be already withheld on your W2 for federal income taxes and your income tax bracket is 32%. The short term capital gains on investments (<1 year) are taxed like income,...
Use the following information from questions 6-12. In both 2018 and 2019 you expect to receive a W2 for $200,000; $65,000 will be already withheld on your W2 for federal income taxes and your income tax bracket is 32%. The short term capital gains on investments (<1 year) are taxed like income, long term capital gains on investments (>-1 year) are taxed at 15%, and dividends are taxed at 22%. Besides your W2 income, the only income you have to...
Assume that you purchased 220 shares of stock for $69 a share, that you received an annual dividend of $1.80 a share, and that you sold your stock for $100 a share at the end of one year. What is the total return for your investment? (Ignore commission amounts for this question) Multiple Choice $7,216 $22,396 $396 $15,576 $31 A corporation's stock has a current market price of $88. The corporation has paid a dividend of $3.95 over the last...