You purchased 100 shares of MegaCorp for $17 per share four months ago. The brokerage fee was 4% of the total dollar amount of the purchase. Today you sold the shares for $23.50 per share. Brokerage fees were 4% of the total sale value. If you are in the .28 marginal tax bracket, how much tax do you owe on the capital gain? You just sold 300 shares of stock at a price of $42.06 a share. You purchased the stock for $39.80 a share and have received total dividends of $1,272. What is the total capital gain on this investment?
You purchased 100 shares of MegaCorp for $17 per share four months ago. The brokerage fee was 4% of the total dollar amount of the purchase. Today you sold the shares for $23.50 per share. Brokerage fees were 4% of the total sale value. If you are in the .28 marginal tax bracket, how much tax do you owe on the capital gain? You just sold 300 shares of stock at a price of $42.06 a share. You purchased the stock for $39.80 a share and have received total dividends of $1,272. What is the total capital gain on this investment?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation
Section: Chapter Questions
Problem 9MC
Question
I want to correct answer

Transcribed Image Text:You purchased 100 shares of MegaCorp for $17 per share
four months ago. The brokerage fee was 4% of the total
dollar amount of the purchase. Today you sold the shares
for $23.50 per share. Brokerage fees were 4% of the total
sale value. If you are in the .28 marginal tax bracket, how
much tax do you owe on the capital gain?
You just sold 300 shares of stock at a price of $42.06 a
share. You purchased the stock for $39.80 a share and
have received total dividends of $1,272. What is the total
capital gain on this investment?
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