1. Sam Scurry bought several hundred shares of annable.com at a price of $41.40 about 5 years ago that sell for $63.75 per share today. Sam pays capital gains tax at the rate of 17%, and pays tax on dividends at the rate of 27%. Suppose that annable.com elects not to pay a dividend this year, and that Sam sells 21 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.

2. Shawn Daily was given a gift of Giggle stock by his uncle several years ago at a price of $41.25 per share. Giggle sells today for $68.75 per share. Shawn is taxed on capital gains at the rate of 24%, and is taxed on dividends at the rate of 29%. Shawn uses the dividends from Giggle to meet certain expenditures, and is disappointed to learn that Giggle will forego a dividend this year. To counteract the decision by Giggle, Shawn sells 21 shares of Giggle stock. How much of the total amount of proceeds from those shares will Shawn get to keep? $ Place your answer in dollars and cents without a comma or dollar sign.

3. The dividend payout ratio is typically defined as the percentage of the firm's residual cash flow (what's left over after all claimants have been paid) that flows to the shareholders in the form of a dividend. In many cases the quoted dividend is the annual dividend, although it is typically paid out in quarterly chunks. Suppose that Samsonite Inc. has a payout ratio of 80%. What is its annual dividend if its residual cash flow is $5.00 per share? $ What is its quarterly dividend? $ Place your answers in dollars and cents without the dollar sign