Homework Answers
After tax rate of return from this stock =(Price at end of
year-Price at beginning of Year)/Price at beginning of year*(1-
Capital gains tax rate)+Dividend/Price at beginning of year
*Ordinary Income tax rate
=(105-100)/100*(1-20%)+2.50/100*(1-30%) =5.75%
Add Answer to:
You are in an ordinary income tax bracket of 30% and capital gains tax bracket of...
Assume that capital gains are taxed upon realization at ordinary tax rates. Jones, who has a...
Assume that capital gains are taxed upon realization at ordinary tax rates. Jones, who has a federal personal income tax rate of 25 percent, holds an oil stock that appreciates in value by 10 percent each year. He bought the stock one year ago for $1,000. Jones’s stockbroker now wants him to switch the oil stock for a gold stock that is equally risky. Jones has decided that if he holds on to the oil stock, he will keep it...
Paul and Mary are in he 37% tax bracket or ordinary income and the 20% bracket...
Paul and Mary are in he 37% tax bracket or ordinary income and the 20% bracket for capital gains gnore he 3 8% additional tax on n es ment income or higher-income taxpayers They have owned several blocks o stock r many years They are considering the sale of two blocks of stock. The sale of one block would produce a gain of $12,000. The sale of the other would produce a loss of $20,000. For purposes of this problem,...
1. Assume that you are in the 40% federal-plus-state marginal tax bracket and that capital gains...
1. Assume that you are in the 40% federal-plus-state marginal tax bracket and that capital gains taxes are deferred until maturity. Assuming equal investment risk and a horizontal yield curve, rank the following investment opportunities on the basis of the effective annual yields: a. A $100 par value perpetual preferred stock with an annual coupon of 12%, quarterly payments, and selling at $105. b. A $1,000 par value, 20-year, non callable, semiannual bond with a coupon of 12% currently selling...
The expected pretax return on three stocks is divided between dividends and capital gains in the...
The expected pretax return on three stocks is divided between dividends and capital gains in the following way: Stock Expected Dividend Expected Capital Gain A $ 0 $ 10 B $5 $5 C $10 $0 a. If each stock is priced at $105, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 21%.(the effective tax rate on dividends received by corporations is 6.3%,...
The expected pretax return on three stocks is divided between dividends and capital gains in the ...
The expected pretax return on three stocks is divided between dividends and capital gains in the following way: Expected Dividend $0 Expected Capital Gain $10 Stock 10 a. If each stock is priced at $170, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 35% (the effective tax rate on dividends received by corporations is 10.5%), and (iii) an individual with an effective...
The expected pretax return on three stocks is divided between dividends and capital gains in the...
The expected pretax return on three stocks is divided between dividends and capital gains in the following way! Expected Expected Stock Dividend Capital Gain $10 50 Required: o. If each stock is priced at $195, what are the expected net percentage returns on each stock too) a pension fund that does not pay taxes, a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3%), and (ii) an individual with an effective tax rate...
The expected pretax return on three stocks is divided between dividends and capital gains in the...
The expected pretax return on three stocks is divided between
dividends and capital gains in the following way:
Stock
Expected Dividend
Expected Capital Gain
A
$0
$10
B
5
5
C
10
0
a. If each stock is priced at $110, what are
the expected net percentage returns on each stock to (i) a pension
fund that does not pay taxes, (ii) a corporation paying tax at 35%
(the effective tax rate on dividends received by corporations is
10.5%), and...
28 1. Capital Gains Tax. David is in the 35% tax bracket making $300,000 per year...
28 1. Capital Gains Tax. David is in the 35% tax bracket making $300,000 per year as an account executive. Recently, he sold stock that he had held longer than a year for a gain of $10,000. How much tax will David pay on this capital gain? Work:
Edward is single with income that places him in the 35 percent marginal tax bracket for...
Edward is single with income that places him in the 35 percent marginal tax bracket for ordinary income and 15 percent for long-term capital gains. He incurs interest expense of $10,000 attributable to his investment in stocks and bonds. His gross investment income is $6,200 ($1,000 of which is from long-term capital gains and dividends) in 2019. He also has $20,000 of deductible home mortgage interest expense. What are Edward’s options in determining his itemized deduction for investment interest expense?...
An investor is in the 32 percent tax bracket and pays long-term capital gains taxes of...
An investor is in the 32 percent tax bracket and pays long-term capital gains taxes of 15 percent. What are the taxes owed (or saved in the case of losses) in the current tax year for each of the following situations? a) Net short-term capital gains of $3,000; net long-term capital gains of $4,000 b) Net short-term capital gains of $3,000; net long-term capital losses of $4,000 c) Net short-term capital losses of $3,000; net long-term capital gains of $4,000...
Paul and Mary are in he 37% tax bracket or ordinary income and the 20% bracket for capital gains gnore he 3 8% additional tax on n es ment income or higher-income taxpayers They have owned several blocks o stock r many years They are considering the sale of two blocks of stock. The sale of one block would produce a gain of $12,000. The sale of the other would produce a loss of $20,000. For purposes of this problem,...
The expected pretax return on three stocks is divided between dividends and capital gains in the following way: Expected Dividend $0 Expected Capital Gain $10 Stock 10 a. If each stock is priced at $170, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 35% (the effective tax rate on dividends received by corporations is 10.5%), and (iii) an individual with an effective...
The expected pretax return on three stocks is divided between dividends and capital gains in the following way! Expected Expected Stock Dividend Capital Gain $10 50 Required: o. If each stock is priced at $195, what are the expected net percentage returns on each stock too) a pension fund that does not pay taxes, a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3%), and (ii) an individual with an effective tax rate...
The expected pretax return on three stocks is divided between
dividends and capital gains in the following way:
Stock
Expected Dividend
Expected Capital Gain
A
$0
$10
B
5
5
C
10
0
a. If each stock is priced at $110, what are
the expected net percentage returns on each stock to (i) a pension
fund that does not pay taxes, (ii) a corporation paying tax at 35%
(the effective tax rate on dividends received by corporations is
10.5%), and...
28 1. Capital Gains Tax. David is in the 35% tax bracket making $300,000 per year as an account executive. Recently, he sold stock that he had held longer than a year for a gain of $10,000. How much tax will David pay on this capital gain? Work:
Most questions answered within 3 hours.
-
A car starts from rest is heading to a destination that is 5km
ahead. it is...
asked 8 minutes ago -
Introduced species in Southern USA?
a) otter b)water hyacinth c)kudzu d) sea kelp
asked 17 minutes ago -
The fabrication of data/results is a form of research
misconduct. What is fabrication, and why is...
asked 13 minutes ago -
Suppose a manufacturing firm has two factories (Factory 1 and
Factory 2), and a single production...
asked 16 minutes ago -
Suppose Host A wants to send a large file to host B. The path
from Host...
asked 16 minutes ago -
Standard Direct Materials Cost per Unit
Roanoke Company produces chocolate bars. The primary materials
used in...
asked 17 minutes ago -
Describe the process of fertilization including the
acrosomal and cortical reactions, ZP proteins and cell signaling....
asked 18 minutes ago -
An electronic game developer company offers discount depending
on the quantities ordered.
This month"iDevelop" gmae is...
asked 20 minutes ago -
A marketing approach that emphasizes consistency in the
promotional strategy to achieve synergy between its component...
asked 39 minutes ago -
When 15.0 mL of a
4.90×10-4 M copper(II)
iodide solution is combined with 18.0 mL
of...
asked 39 minutes ago -
Suppose the cutoff z score on the null distribution is Zcrit =
1.35 . You could...
asked 42 minutes ago -
when two light bulbs are connected in series, bulb A is brighter
than bulb B. if...
asked 43 minutes ago