Question
Amber invested $500 in units of a mutual fund (TXN) every month starting Jan. 1, 2016. Below is the list of transactions on her account.
Amber invested $500 in units of a mutual fund (TXN) every month starting Jan. 1, 2016. Below is the list of transactions on her account. Assume that dividends and capital gains are not reinvested and she receives the income directly. Use the table to answer the questions below.
| Date | NAV | Dividends Paid Out | Capital Gains Realized |
| 01 01- 2016 | $22 |
|
|
| 02 01- 2016 | $26 |
|
|
| 03 01- 2016 | $21 |
|
|
| 04 01- 2016 | $18 |
|
|
| 04 30 - 2016 |
| $.75/unit | $1.50/unit |
| 05 01- 2016 | $20 |
|
|
| 06 01- 2016 | $25 |
|
|
| 07 01- 2016 | $26 |
|
|
| 08 01- 2016 | $29 |
|
|
| 08 31 - 2016 |
| $.81/unit | $1.25/unit |
| 09 01- 2016 | $27 |
|
|
| 10 01- 2016 | $26 |
|
|
| 11 01- 2016 | $21 |
|
|
| 12 01- 2016 | $19 |
|
|
| 12 31 - 2016 |
| $.64/unit | $1.26/unit |
- How many units did she buy in total?
- What was the average cost of her units at the end of 2016?
3. If she sells 200 units on December 31, 2016 for $26/share (after receiving the final dividend and capital gain payments), how much will she owe in taxes on her capital gains for the year? Assume a 35% marginal tax rate and a 26% average rate
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Ethics In Finance Case Studies From A Womans Life On Wall Street
Authors: Kara Tan Bhala
1st Edition
3030737535, 978-3030737535
