Question

On January 1, 2015, an investor bought 200 shares of Al-Masry Steel at E£25 (Egyptian pound)...

On January 1, 2015, an investor bought 200 shares of Al-Masry Steel at E£25 (Egyptian pound) per share. On January 3, 2016, the investor sold the stock for E£30 per share. The stock paid quarterly dividend of E£2 per share. How much (in E£) did the investor earn on this investment and, assuming the investor will pay a tax of 25%, how much will she pay in income taxes on this transaction?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Purchase price of 200 shares of Al-Masry Steel = 200 x 25

= 5,000 Egyptian pounds

Sale price of 200 shares of Al-Masry Steel = 200 x 30

= 6,000 Egyptian pounds

Dividend received during the holding period = 200 x 2 x 4

= 1,600 Egyptian pounds

Earnings of investor = Sale price of 200 shares of Al-Masry Steel + Dividend received during the holding period - Purchase price of 200 shares of Al-Masry Steel

= 6,000 + 1,600 - 5,000

= 2,600 Egyptian pounds

Capital gain on sale of shares = 6,000 - 5,000

= 1,000 Egyptian pound

Tax payable = 1,000 x 25%

= 250 Egyptian pound

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On January? 1, 2013, an investor bought 300 shares of? Gottahavit, Inc., for ?$33 per share....
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...
An investor purchased 300 shares of a company at $25 per share. The stock was bought...
An investor purchased 300 shares of a company at $25 per share. The stock was bought on 70 percent margin (30 percent of the purchase amount was borrowed). One month later, the investor had to pay interest on the amount borrowed at a rate of 3 percent per month. At that time, the investor received a dividend of $0.6 per share. Immediately after receiving the dividend, he sold the shares at $38 per share. The investor paid total commissions of...
Assume an investor buys 5 shares of Stock A on January 1 2015 for $80 per...
Assume an investor buys 5 shares of Stock A on January 1 2015 for $80 per share. During the year the stock paid $2 in dividends per share. On Jan 1, 2016, the investor purchases another 8 shares at $84. During the year the stock paid another $2 dividend. On Jan 1, 2017, the investor sells 3 shares for $85, but collects the same $2 in dividends throughout 2017 on the remaining shares. Finally on Jan. 1, 2018 the investor...
Assume an investor buys 5 shares of Stock A on January 1 2015 for $80 per...
Assume an investor buys 5 shares of Stock A on January 1 2015 for $80 per share. During the year the stock paid $2 in dividends per share. On Jan 1, 2016, the investor purchases another 8 shares at $84. During the year the stock paid another $2 dividend. On Jan 1, 2017, the investor sells 3 shares for $85, but collects the same $2 in dividends throughout 2017 on the remaining shares. Finally on Jan. 1, 2018 the investor...
An investor purchased 400 shares of a company at $30 per share. The stock was bought...
An investor purchased 400 shares of a company at $30 per share. The stock was bought on 65 percent margin (35 percent of the purchase amount was borrowed). One month later, the investor had to pay interest on the amount borrowed at a rate of 3 percent per month. At that time, the investor received a dividend of $0.50 per share. Immediately after receiving the dividend, he sold the shares at $35 per share. The investor paid total commissions of...
An investor purchased 400 shares of a company at $30 per share. The stock was bought...
An investor purchased 400 shares of a company at $30 per share. The stock was bought on 65 percent margin (35 percent of the purchase amount was borrowed). One month later, the investor had to pay interest on the amount borrowed at a rate of 3 percent per month. At that time, the investor received a dividend of $0.50 per share. Immediately after receiving the dividend, he sold the shares at $35 per share. The investor paid total commissions of...
On December 31, 2015, Dow Steel Corporation had 650,000 shares of common stock and 35,000 shares...
On December 31, 2015, Dow Steel Corporation had 650,000 shares of common stock and 35,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $450,000 and $74,000 to common and preferred shareholders, respectively, on December 15, 2016. On February 28, 2016, Dow sold 64,000 common shares. Also, as a part of a 2015 agreement for the acquisition of Merrill Cable Company, another 26,000 shares...
zoe bought shares of stock on january 1 at a price of $43.00 per share. During...
zoe bought shares of stock on january 1 at a price of $43.00 per share. During the year, zoe received four quarterly dividends of $1.80 per share. on december 31, zoe checked the price of the stock and it was $47.50. what is the total dollar return that zoe received for the year? what is the dividend yield that zoe received? what was zoe's capital gains yield? what was the total yield for the year?
On January 1, 2015 ACME Company made the following purchases of stock investments 100 of the...
On January 1, 2015 ACME Company made the following purchases of stock investments 100 of the 100,000 shares of AJAX Company for $5000. ACME accounts for this investment as a trading security 1000 of the 4000 shares of FIDO Company for $50,000 the CEO of ACME now sits on the board of directors of FIDO 1-Mar-15 AJAX declared and paid a $2 per share dividend FIDO declared and paid a $3 per share dividend December 31, 2015   AJAX stock is...
Problem: On January 1, 2018, an investor is considering buying 120 shares of MUFC, which current...
Problem: On January 1, 2018, an investor is considering buying 120 shares of MUFC, which current price is $45 per share. The investor sets a margin of 50% and assumes that there are no brokerage costs. Later, on January 1, 2019, due to a very good first half of the premier league season, the stock rises to $55 per share. What is debit balance in this transaction as of January 1, 2018? At the initial date, how much equity capital...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT