Question

483.04 -9.10 (-1.85%) Buy Sell As of 1:26PM EST. Market open. Summary Company Outlook @ Chart Conversations Statistics Historical Data Profile Financials NEW Analysis Options Previous Close 492.14 Market Cap 83B 105D 1M 6M YTD 1y 5Y Max kr Full screen 510.00 Open 497.10 Beta (5Y Monthly) 0.65 Bid 480.50 x 2900 PE Ratio (TTM) N/A 482.907 Ask 480.49 x 1100 EPS (TTM) -4.77 450.00 Day's Range 472.87 - 498.80 Earnings Date Jan 28, 2020- Feb 3, 2020 420.00 52 Week Range 176.99 - 498.80 Forward Dividend & Yield N/A (N/A) Volume 21,030,094 Ex-Dividend Date N/A Fri Mon Tue Wed Thu Trade prices are not sourced from all markets Avg. Volume 9,963,293 1y Target Est 315.00 View more ideas BUY Overvalued Analyst Recommendation by Argus Research Fair Value View details All Short Term Mid Term Long Term a. If you would like to buy Tesla, Inc. stock, what price would you pay per share? b. How much would you receive per share if you wanted to sell this stock?

c. You are a shareholder in a C corporation. The corporation earns $5.00 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. Assume the corporate tax rate is 40% and the personal tax rate on (both dividend and non-dividend) income is 30%. How much is left for you after all taxes are paid?

Answer 1

a) If one want to buy share of tesla than he has to pay 480.49$ which is ask price. Ask price is nothing but the price at which seller wants to sell the stock

b) If one want to Sell share of tesla than he will receive 480.50$ which is bid price. bid price is nothing but the price at which buyers wants to buy the stock

c) Statement showing Amount left after all tax are paid

Particulars	Amount
Earning per share	5
Less: Corporate tax @ 40%	2
Earnings after Corporate tax	3.00
Less: Personal tax @ 30%	0.90
Amount left after all tax are paid	2.10