Sam Scurry bought several hundred shares of annable.com at a price of $ 41.00 ab

Question

Sam Scurry bought several hundred shares of annable.com at a price of $41.00 about 5 years ago that sell for $63.75 per share today. Sam pays capital gains tax at the rate of 19%, and pays tax on dividends at the rate of 25%.  


Suppose that annable.com elects not to pay a dividend this year, and that Sam sells 19 shares of stock. How much of the total amount of proceeds from the sale will Sam get to keep?



Place your answer in dollars and cents without a comma or dollar sign. It is best to work your analysis out using at least four decimal places of accuracy. That is, allow your tax on capital gain per share to go beyond the second decimal place.

Explanation / Answer

Mr.Sam Scurry amount of Proceeds from Sale of Shares

Amount of Gain = Gain after Capital Gain tax*Number of Shares Sold

=18.4275*19

=350.1225

Selling Price of Shares 63.75 Less : Purchase Price of Shares (41.00) Gain From Share 22.75 Less ; Capitak Gain Tax @ 19% (4.3225) Gain after Capital Gain tax 18.4275 Number of Shares Sold 19

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