1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anna71 [15]
3 years ago
8

Mason and Kirsty purchase 30 shares of Apple stock on January 1, 2009 for $72.49 per share. Mason and Kirsty receive $0.36 per s

hare in dividends each quarter. On December 31, 2015 Mason and Kirsty sell all 30 shares of Apple stock for $183.00 per share. Mason and Kirsty’s long-term capital gains and dividends are taxed at 10%. What is Mason and Kirsty’s after-tax average annual return? Calculate after-tax dividends on an annual basis at the end ?
Business
1 answer:
zmey [24]3 years ago
5 0

Answer:

  • after-tax average annual return = 14.41%
  • after tax dividends per year = $38.88

Explanation:

initial investment = 30 shares x $72.49 per share = $2,174.70

- dividends received per year = 30 shares x $0.36 x 4 (dividends paid every quarter) = $43.20

after tax dividends per year = $43.20 x 90% = $38.88

- long term capital gains = (30 shares x $183 per share) - initial investment =  $5,490 - $2,174.70 = $3,315.30

taxes on long term capital gains = $3,315.30 x 10% = $331.53

To calculate Mason and Kirsty's after tax average annual return (interest rate) we can use the excel spreadsheet =RATE function, where:

  • PV = -2174.70
  • FV = 5490 - 331.53 = 5158.47
  • Pmt = 38.88
  • Nper = 7

=RATE (nper, pmt, pv, [fv])

=RATE (7,38.88,-2174.70,5158.47) = 14.41%

You might be interested in
In Business studies. what the business owes the other is called what​
goldenfox [79]

Answer:assets

Explanation:

7 0
2 years ago
Read 2 more answers
The accounting records of Whispering Winds Corp. show the following data. Beginning inventory 3,010 units at $6 Purchases 8,130
Sindrei [870]

Answer:

$66,700

b. LIFO = $70800

67807.81

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

(8130 x 8) + [(9090 - 8130) x 6) = 70800

FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold

(3010 x 6) + [(9090 - 3010) x $8] = 66,700

Average cost = [(3010 x 6) + (8130 x 8)] /

18060

48640

b 65040

5760

7 0
3 years ago
What is a motive? It’s for finance
CaHeK987 [17]

A motive is a drive to do something.

8 0
3 years ago
Read 2 more answers
The internal rate of return method is used to analyze a $831,500 capital investment proposal with annual net cash flows of $250,
Umnica [9.8K]

Answer:

annuity factor for 20% and 6 periods = 3.326

Explanation:

the IRR represents the discount rate at which a project's NPV = 0

NPV = initial outlay + PV of future cash flows

NPV = 0

initial outlay = -$831,500

PV of future cash flows = $831,500 = cash flow x annuity factor

annuity factor = $831,500 / $250,000 = 3.326

using an annuity table and looking for the annuity factors for 6 periods, we find that the annuity factor for 20% and 6 periods = 3.326.

So our IRR = 20%

5 0
3 years ago
3. assume that cane expects to produce and sell 91,000 alphas during the current year. one of cane's sales representatives has f
allochka39001 [22]

the financial advantage (disadvantage) of accepting the new customer's order Profits will be increased by $273,000 if an order is accepted.

someone who represents some other person or a group: The employer has representatives in maximum EU capitals. A consultant is likewise a member of a regulation-making institution. employees from every department select a representative. She had a disturbing task as an income consultant. the brand-new head of the country needs to be selected by way of an 87-member representative council. He was in no manner representative of canine trainers in trendy.

A character elected or in any other case appointed to represent personnel, for instance, for the purposes of records and session workout throughout a collective redundancy or transfer of a venture challenge to TUPE, or for the functions of a data and consultation agreement. Representatives are selected with the aid of residents to serve in legislative bodies and to voice their worries to the authorities. The legislature of the American government is called Congress. The job of Congress is to make the laws and policies of the USA.

To learn more about representatives visit here:

brainly.com/question/13246446

#SPJ4

3 0
1 year ago
Other questions:
  • When the sponsor-investigator holds the IND for an investigational drug he or she is responsible for annual reporting of which o
    6·2 answers
  • Elen holds 1,000 shares of fizbo inc. stock that she purchased 11 months ago. the stock has done very well and has appreciated $
    10·1 answer
  • What is the present value on January 1, 2016, of $30,000 due on January 1, 2021, and discounted at 12% compounded annually?What
    14·2 answers
  • 1. Explain the link between scarcity and each of the following.<br>i. Choice, (2 marks)​
    12·1 answer
  • Newspaper vending machines are often built so that customers can pay to lift a door and take a paper off a pile of daily newspap
    9·1 answer
  • Some individuals want work that makes minimal intellectual demands and provides the security of routine; for them, ________ is a
    13·1 answer
  • Consider two cities, City A and City B, which are entirely identical except that Uber operates in City A, but not in City B. Con
    14·1 answer
  • Xavi is a painter of landscapes and seashore portraits. He works outside and has no overhead or fixed costs such as a studio. In
    5·1 answer
  • Galaxy Air, previously a no-growth firm, has two million shares outstanding. Until now, it consistently earned $20 million per y
    6·1 answer
  • Snap is edenyaang and insta nobagchasers
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!