On January 1, 2013, an investor bought 200 shares of Gottahavit, Inc., for $50 per share. On January 3, 2014, the investor sold the stock for $55 per share. The stock paid a quarterly dividend of $0.25 per share How much (in $) did the investor earn on this investment and, assuming the investor is in the 33% tax bracket, how much will she pay in income taxes on this transaction? Assume a preferential tax rate of 15% on dividends and capital gains. The amount (before taxes) the investor earned on this investment is $ (Round to the nearest dollar.) Assuming a preferential tax rate of 15%, the amount she will pay in income taxes on this transaction is $[ (Round to the nearest cent)
On January 1, 2013, an investor bought 200 shares of Gottahavit, Inc., for $50 per share. On January 3, 2014, the investor sold the stock for $55 per share. The stock paid a quarterly dividend of $0.25 per share How much (in $) did the investor earn on this investment and, assuming the investor is in the 33% tax bracket, how much will she pay in income taxes on this transaction? Assume a preferential tax rate of 15% on dividends and capital gains. The amount (before taxes) the investor earned on this investment is $ (Round to the nearest dollar.) Assuming a preferential tax rate of 15%, the amount she will pay in income taxes on this transaction is $[ (Round to the nearest cent)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:On January 1, 2013, an investor bought 200 shares of Gottahavit, Inc., for $50 per share. On January 3,
2014, the investor sold the stock for $55 per share. The stock paid a quarterly dividend of $0.25 per share.
How much (in $) did the investor earn on this investment and, assuming the investor is in the 33%
tax bracket, how much will she pay in income taxes on this transaction? Assume a preferential tax rate
of 15% on dividends and capital gains.
The amount (before taxes) the investor earned on this investment is $
(Round to the nearest dollar.)
Assuming a preferential tax rate of 15%, the amount she will pay in income taxes on this transaction is $
(Round to the nearest cent.)
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