(Stock repurchase and taxes) The Barryman Drilling Company is planning on repurchasing $1.12 million worth of the company's 490,000 shares of stock, which is currently trading at a price of $11.16 per share. Stan Barryman is the founder of the company and still holds 16,000 shares of company stock that he originally purchased for $8.35 per share. If Stan decides to sell 2,100 of his shares for $11.16 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 $ ... (Round to the nearest dollar.)
(Stock repurchase and taxes) The Barryman Drilling Company is planning on repurchasing $1.12 million worth of the company's 490,000 shares of stock, which is currently trading at a price of $11.16 per share. Stan Barryman is the founder of the company and still holds 16,000 shares of company stock that he originally purchased for $8.35 per share. If Stan decides to sell 2,100 of his shares for $11.16 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 $ ... (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
Problem 1PS
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M6Q7: 2nd Attempt
Transcribed Image Text:(Stock repurchase and taxes) The Barryman Drilling Company is planning on repurchasing $1.12 million worth of the company's 490,000 shares of stock, which
is currently trading at a price of $11.16 per share. Stan Barryman is the founder of the company and still holds 16,000 shares of company stock that he originally
purchased for $8.35 per share. If Stan decides to sell 2,100 of his shares for $11.16 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 $
(Round to the nearest dollar.)
Expert Solution
Step 1
Step 1
The amount left over after deducting all costs, such as taxes, operating costs, interest, and preferred stock dividends, is known as the company's after-tax net income. This amount is then divided by the total sales revenue.
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