Virginia Tech FIN FIN MISC You decided to buy a smart snazzy startup company when it went…
You decided to buy a smart snazzy startup company when it went public.
You bought 200 shares for $40/share. The stock has doubled in price. It
also paid a qualified dividend of $1.50/share. Your taxable income for the year is $35,000
and you are filing as a single tax status. Calculate the after tax return under the following
a. You have not sold the stock at this point.
b. You have sold the stock 12 months and one day after purchase.
c. You have sold the stock 11 months (you received the entire dividend for the year).
d. What is the take away from your calculations
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