What was andreas return on the stock

Assignment Help Financial Management
Reference no: EM13768858

a. Andrea purchased 200 shares of stock for $45 per share. During the year, she received dividend checks amounting to $180. Andrea recently sold the stock for $54 per share. What was Andrea's return on the stock?

b. Andrea is in a 25 percent tax bracket. What amount of taxes will she pay on her capital gain if she held the stock for less than a year?

c. How much would Andrea pay for tax if she held the stock for more than a year, assuming she sold it for the same amount? (Long term capital gain)

d. How much would Andrea save in taxes if she held the stock for more than a year, assuming she sold it for the same amount? (Savings)

Reference no: EM13768858

Questions Cloud

What influenced you to choose the field of social work : Why you are interested in the Master of Social Work (MSW) program at Walden University and what are your plans after you receive your degree? What influenced you to choose the field of social work
The after-tax cost of debt : The company pays 50% corporate taxes. What is the after-tax cost of debt?
An airline wants to estimate the average number : An airline wants to estimate the average number of unoccupied seats per flight. A random sample of 30 flights is selected and the mean number of unoccupied seats is 7.6. Assume that the population standard deviation of unoccupied seats is known to be..
Cost of equity capital with the new capital structure : A firm has 0 debts in its capital structure. Its overall cost of capital is 9%. The firm is considering a new capital structure with 40% debt. The interest rate on the debt would be 4%. Assuming that the corporate tax rate is 34%, what would be its c..
What was andreas return on the stock : Andrea purchased 200 shares of stock for $45 per share. During the year, she received dividend checks amounting to $180. Andrea recently sold the stock for $54 per share. What was Andrea's return on the stock? Andrea is in a 25 percent tax bracket. W..
What is the probability that the sample mean is greater : According to an IRS study, it takes a mean time of 290 minutes for taxpayers to prepare, copy and electronically transfer a 1040 tax form. The standard deviation of this distribution is 75 minutes. A consumer watchdog agency selects a random sample o..
Brief description about an environmental event : The Environmental Events Log is where students will write a brief description about an environmental event that they learned about. An environmental event can be a weather event, release of new research findings, environmental monitoring or measur..
What transport protocols are used in the applications : Explain how SOAP, RPC, HTTP, and XML are used in inter-process communications. Provide sufficient details to distinguish each protocol.
Problem related to release carbon monoxide : Discuss at least two policies that you would seek to implement to reduce the impact of indoor air pollution on the human health in your community.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the expected return on a portfolio composed

Security F has an expected return of 10.9% and a standard deviation of 24% per year. Security G has an expected return of 18.1% and a standard deviation of 63% per year.

  What is the maximum gain-maximum loss for the investment

You are buying a put option of GM at a strike price of $75 and maturity of 1 month. The current trading price is $75. The price of the option is $2. What would the major motive to buy the put option? What is the maximum loss for the investment? What ..

  Benefits to annual costs of this runway construction project

The construction of a new runway at an airport will cost $30 million, to be paid with capital development bonds over a 20-year period. The runway is expected to decrease the average aircraft delay from 9 to 5 min. The average annual demand is expecte..

  Standard deviation and positive equity

A bank estimates that its profit next year is normally distributed with a mean of 0.8% of assets and the standard deviation of 2% of assets. How much equity (as a percentage of assets) does the company need to be (a) 99% sure that it will have a posi..

  Integrate all the pieces

In this assignment, integrate all the pieces of work you have drafted and formally turn it into the capstone strategy audit.

  Compute the annual amount of the instalment loan payment

The company you work for is planning to borrow $58000 at an effective interest rate of 15% per year. The company expects to repay the loan with six equal annual payments at the end of each year, beginning one year after the loan is received. Compute ..

  What is the net present value of spending

What is the Net Present Value (NPV) of spending $3,000 more today on an energy efficient hybrid car which will save you $900 a year for the next five years assuming you could invest this money elsewhere and earn 5%?

  Most recent dividend per share paid on the stock

Teder Corporation stock currently sells for $30 per share. The market requires a 13.5 percent return on the firm's stock. If the company maintains a constant 8 percent growth rate in dividends, the most recent dividend per share paid on the stock was..

  Generate no internal equity for the foreseeable future

Southern Alliance Company needs to raise $21 million to start a new project. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 55 percent common stock, 11 percent preferred stock, a..

  Create a tracking portfolio for the convertible bond

A default free convertible bond can be converted to 1.4 shares of stock at the option of the bondholder. Each convertible bond carries a face value of 100 and an annual coupon rate 6%. The conversion to stock may take place today or at the end of yea..

  Calculating annuity cash flows

If you put up $42,000 today in exchange for a 6.50 percent, 16-year annuity, what will the annual cash flow is? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  Ross creek ltd

On 3 August 2011 Ross Creek Ltd declared and paid a dividend of $10000 from profits earned prior to its acquisition by Sebastopol Ltd. The directors consider that the value of the investment in Ross Creek Ltd has been impaired and have adjusted the p..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd