(Stock repurchase and taxes) The Barryman Drilling Company is planning on repurchasing $1.00 million worth of the company's 500,000 shares of stock, which is currently trading at a price of $10.01 per share. Stan Barryman is the founder of the company and still holds 18,000 shares of company stock that he originally purchased for $7.83 per share. If Stan decides to sell 2,100 of his shares for $10.01 a share, what will be his after-tax proceeds where capital gains are taxed at 15 percent? Stan's after-tax proceeds from the sale are $21021. (Round to the nearest dollar.)
(Stock repurchase and taxes) The Barryman Drilling Company is planning on repurchasing $1.00 million worth of the company's 500,000 shares of stock, which is currently trading at a price of $10.01 per share. Stan Barryman is the founder of the company and still holds 18,000 shares of company stock that he originally purchased for $7.83 per share. If Stan decides to sell 2,100 of his shares for $10.01 a share, what will be his after-tax proceeds where capital gains are taxed at 15 percent? Stan's after-tax proceeds from the sale are $21021. (Round to the nearest dollar.)
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
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Transcribed Image Text:(Stock repurchase and taxes) The Barryman Drilling Company is planning on repurchasing $1.00 million worth of the company's 500,000 shares of
stock, which is currently trading at a price of $10.01 per share. Stan Barryman is the founder of the company and still holds 18,000 shares of company
stock that he originally purchased for $7.83 per share. If Stan decides to sell 2,100 of his shares for $10.01 a share, what will be his after-tax proceeds
where capital gains are taxed at 15 percent?
CH
Stan's after-tax proceeds from the sale are $21021. (Round to the nearest dollar.)
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