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Helen holds 400 shares of Fizbo Inc. stock that she purchased 11 months ago. The stock has done very well and has appreciated $60/share since

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Helen holds 400 shares of Fizbo Inc. stock that she purchased 11 months ago. The stock has done very well and has appreciated $60/share since Helen bought the stock. When sold, the stock will be taxed at capital gains rates (the long-term rate is 15 percent and the short-term rate is the taxpayer's marginal tax rate). Ignore the time value of money. a. If Helen's marginal tax rate is 35 percent, how much would she save by holding the stock an additional month before selling? Tax savings b. What might prevent Helen from waiting to sell? Helen bears for an additional month. if she holds the stock there is market volatility may be selling the stock The stock price could encounters financial substantially if addition, Helen or if the company for which she may difficulties. In be unwilling to wait

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