Question
for this guide, we are going to assume on 1 jan, 2015 you were given $30000 to invest in the stock market and you are
for this guide, we are going to assume on 1 jan, 2015 you were given $30000 to invest in the stock market and you are needed to evaluate your after-tax investment portfolio returns for 2015 and 2016.we are going to make some simplifying assumptions. the stock market consists of 4 stocks: disney(DIS), alphabet (GOOG), McDonald's (MCD) and Exon Mobil (XOM).All the trading in your portfolio took place on one of 5 dates-1/1/15, 7/1/2015,12/31/15,7/1/2016,12/31/16, and that of the stocks on those dates were:
1/1/15 1/15/15 7/1/15 12/31/15 7/1/16 12/31/16
DIS 72 80 86 91 120 96
GOOG 1180 1050 570 535 625 745
MCD 94 93 95 92 100 124
XOM 92 97 99 87 79 78
Dividends were all paid on 3/15 and 9/15 each year. the dividend rate for each stock were:
DIS 60/Share GOOG no dividend MCD 1.60/share XOM 1.40/share
the only stock split over the two years involved GOOG, which split 2:1 on 3/30/15
all stock trades incur a commission charge of $10
tax rates are 30% on dividends and realized capital gains.taxes are calculated and paid on 12/31 of each year and are rounded to the nearest dollar.
capital gains are accounted for on a first in-first out basis.all cash balances earn no interest.
during the 2 years ,you made the following trades
sold bought
1/1/15 bought 50 shares DIS
bought 5shares GOOG
Bought 50 shares MCD
Bought 70 shares XOM
1/15/15 bought 12 shares DIS
Bought 12 shares MCD
7/1/15 Sold 50 shares DIS bought 30 shares XOM
sold 50 shares MCD bought 10 shares GOOG
12/31/15 sold 10shares GOOG bought 75 shares MCD
7/1/16 Sold 100shares XOM bought 10 shares GOOG
12/31/16 Sold 10shares GOOG bought 100 shares DIS
use all the information to calculate the following for each of 2015 and 2016
a)total dividend income
b)total realized capital gains
c)tax paid
d)year end holding of each stock
e)year end cash balance
f)year end account value
g)annual after tax total return
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