Question
a) I recently purchased a stock for $43 per share. The stock is now selling for $54 per share and the firm recently announced a
a) I recently purchased a stock for $43 per share. The stock is now selling for $54 per share and the firm recently announced a special dividend of $5 per share. My capital gains tax rate is 20% and my ordinary (dividend) tax rate is 28%. How much better (or worse) off will I be if I sell the stock before the ex-dividend date?
b) I recently purchased a stock for $50 per share. The stock is now selling for $55 per share and the firm recently announced a special dividend of $5 per share. My capital gains tax rate is 15% and my ordinary (dividend) tax rate is 22%. How much better (or worse) off will I be if I sell the stock before the ex-dividend date?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
