Solution-Capital gains tax rate, The following table is a

Capital gains tax rate

Reference no: EM13962924

The following table is a list of all of the stocks that you have in your stock portfolio. The original purchase price, current price and your best guess for the "anticipated" price (one year into the future) is given below:

		Share Price ($)
Stock #	Shares Owned	Purchase	Current	Expected In One Year
1	234	20	30	36
2	272	25	34	39
3	106	30	43	42
4	452	35	47	45
5	486	40	49	51
6	359	45	53	55
7	345	50	60	63
8	419	55	62	64
9	255	60	64	66
10	264	65	66	70

Assume that the capital gains tax rate on long term profits is 20%. In addition, selling shares incurs a transaction cost of 1% of the sale proceeds.

Suppose that you need at least $30,000 in cash today. As such, you must sell off some of your stocks.

Create an integer linear program that tells you how many shares of which stock to sell in order to get the cash you need such that the anticipated future portfolio value of the remaining stocks is maximized.

Reference no: EM13962924

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Capital gains tax rate

Reference no: EM13962924

Reference no: EM13962924

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