Your parents spent $7,000 to buy 200 shares of stock in a new company 12 years...
has 22. Your parents spent $4,500 to buy 300 shares of stock in a new company 20 years ago. The stock appreciated 11 percent per year on average. What is the current value of those 300 shares? A. $9,900.00 B. $14,400.00 C. $33,435.38 D. $36,280.40
Matt sold 200 shares of stock today for $34 a share. He purchased those shares three years ago at a cost of $26 per share. His average tax rate is 22 percent, his marginal tax rate is 28 percent, and the capital gains tax is 15 percent. How much federal income tax does Matt owe on the sale of these shares?
Question 2 7 pts You buy 100 shares of Apple stock at $2 and 200 shares of Boeing stock at $3. Over the next year, your investment in Apple has 2% total return, while your investment in Boeing as 1% total return. What is your portfolio return for the year? Do not round at intermediate steps in your calculation. Express your answer in percent. Round to two decimal places. Do not type the % symbol. If the return is negative,...
Five years ago, Kate purchased a dividend-paying stock for $30,000. For all five years, the stock paid an annual dividend of 5 percent before tax and Kate’s marginal tax rate was 24 percent. Every year Kate reinvested her after-tax dividends in the same stock. For the first two years of her investment, the dividends qualified for the 15 percent capital gains rate; however, for the last three years the 15 percent dividend rate was repealed and dividends were taxed at...
five years ago, kate purchased a dividend paying stock for $32,000. for all five years, the stock paid an annual dividend of 3 percent before tax and kate marginal tax rate was 24 percent. every year kate reinvested her after tax dividends in the same stock. for the first two years of her investment, the dividends qualified for the 15 percent capital gains rates; however, for the last three years the 15 percent dividend rate was repealed and dividends were...
5. Suppose that one year ago, you spent $70,210 to buy stock in Wyeth Pharmaceutical Corp. which was selling for $50.15 per share. Wyeth paid a dividend of $0.28 per quarter. Yesterday you sold the stock for $41.75 per share. a. What was your capital gain or loss in this stock purchase? $_ b. What was your rate of return on this stock purchase?
Your company has spent $300,000 on research to develop a new computer game. The firm is planning to spend $50,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $6,000. The machine has an expected life of 7 years, a $35,000 estimated resale value, and falls under the MACRS 10-Year class life. Revenue from the new game is expected to be $400,000 per year, with costs of...
On January 2, 2018, All Good Company purchased 7,000 shares of the stock of Big Bad Company, and DID obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $15 per share, and represents a 30% ownership stake. Big Bad Company made $300,000 of net income in 2018, and paid dividends to All Good Company of $35,000 on December 15, 2018. Big Bad Company's stock was trading on the open market for $18 per share at the...
E. $3.44 10. Shares of Hot Donuts common stock are currently selling for $32.35. The last annual dividend paid was $1.5 per share and the market rate of return is 12 percent. At what rate is the dividend growing? A. 4.71 percent B. 5.13 percent C. 6.61 percent D. 7.04 percent E. 8.64 percent 11. Combined Communications is a new firm in a rapidly growing industry The company is planning on increasing its annual dividend by 15 percent a year...
(Preferred stockholder expected return) You own 200 200 shares of Dalton Resources preferred stock, which currently sells for $ 39.85 $39.85 per share and pays annual dividends of $ 2.25 $2.25 per share. a. What is your expected return? b. If you require a return of 11 11 percent, given the current price, should you sell or buy more stock?