Question

On January? 1, 2013, an investor bought 300 shares of? Gottahavit, Inc., for ?$33 per share. On January? 3, 2014, the investor sold the stock for ?$37 per share. The stock paid a quarterly dividend of ?$0.14 per share. How much? (in $) did the investor earn on this investment and assuming the investor is in the 33?% tax? bracket, how much will she pay in income taxes on this? transaction? Assume a preferential tax rate of? 15% on dividends and capital gains. Please show your work in an Excel workbook. Thank you very much!

Answer 1

		Purchased 300 shares for $33 9900 sold 300 shares for $37 11100 Profit on holding 1200 dividend is paid on quarterly basis 0.14 4 quarters in a year 4 1 year 12 0.42 Dividend received during the holding 126 less: DDT 18.9 Net income from Dividend 107.1 Capital Gain 1200 CG Tax 180 Net income from Sale of Shares 1020 Total Income 1127.1