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Author Question: Assuming a tax rate on ordinary income of 25% and a long-term capital gain rate of 10%, how much ... (Read 63 times)

bclement10

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Question 1

What would you pay for a stock whose price you estimate will be $50 in 10 years and you wish to earn a return on the investment of 9% per year? Ignore brokerage commissions and tax implications and assume the stock pays no dividends during the holding period.


◦ $45
◦ $41
◦ $21.10
◦ $15

Question 2

Assuming a tax rate on ordinary income of 25% and a long-term capital gain rate of 10%, how much would you pay in taxes if you sold stock "A" for a $200 capital gain after holding it for 5 months, stock "B" for a $300 capital gain after holding it for 8 months, and stock "C" for a $500 capital gain after holding it for 14 months?


◦ $250
◦ $100
◦ $130
◦ $175


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Marked as best answer by bclement10 on Apr 14, 2019

Leostella20

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bclement10

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Reply 2 on: Apr 14, 2019
Great answer, keep it coming :)


scottmt

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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